1
Kafue Gorge Regional Training Centre
(Trust)
Our Motto:
“Your Home for Energy
Training and
Conferences”
STRATEGIC BUSINESS PLAN
2018-2022
“DIVERSIFICATION FOR GROWTH”
ii
TABLE OF CONTENTS
BUSINESS DESCRIPTION........................................................................................ vii
KGRTC BOARD OF TRUSTEES ............................................................................. viii
EXECUTIVE SUMMARY .......................................................................................... ix
1. BACKGROUND OF THE KAFUE GORGE REGIONAL TRAINING
CENTER .................................................................................................................... 11
1.1 Brief History ...................................................................................................... 11
1.2 Legal Mandate and Enabling Instruments ........................................................... 11
1.2.1 Country Agreement .............................................................................. 11
1.2.2 Memorandum of Understanding with ZESCO....................................... 12
1.2.3 Trust Deed ............................................................................................ 12
1.3 Socio-Economic Benefits of the Centre .............................................................. 13
1.4 Services Offered ................................................................................................. 14
1.4.1 Training ................................................................................................ 14
1.4.2 Consultancy Services ............................................................................ 14
1.4.3 Conference and Seminar Facilities ........................................................ 14
1.4.4 Accommodation ................................................................................... 15
1.4.5 Catering Facilities ................................................................................. 15
1.4.6 Other Facilities ..................................................................................... 15
2. ORGANIZATIONAL ASSESSMENT ................................................................ 16
2.1 Review of the 2013 – 2017 Business Plan .......................................................... 16
2.1.1 Course Participants from 2013 to 2017 ................................................. 19
2.1.2 Conference and Seminar Facilities Utilization from 2013 to 2017 ......... 20
3. RATIONALE FOR STRATEGIC BUSINESS PLAN 2018-2022 ......................... 21
4. THE PLANNING FRAMEWORK ..................................................................... 21
5. SITUATIONAL ANALYSIS .............................................................................. 22
5.1 PESTEL Analysis ............................................................................................... 22
5.2 SWOT Analysis ................................................................................................. 24
5.3 Risk Management ............................................................................................... 27
5.3.1 Analysis of Risks .................................................................................. 28
5.3.2 Risk Mitigation Strategies ..................................................................... 29
6. STRATEGIC BUSINESS PLAN FOR 2018 – 2022 ............................................. 31
6.1 KGRTC Vision, Mission and Core Values.......................................................... 31
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6.2 Strategic Themes for the Strategic Business Plan 2018 – 2022............................ 32
6.3 Strategic Objectives and KPIs for the 2018 – 2022 SBP ..................................... 33
6.4 Strategy Map for the 2018 – 2022 SBP ............................................................... 33
6.5 Corporate Balanced Scorecard ............................................................................ 33
6.6 The KGRTC Balanced Scorecard for the 2018 – 2022 SBP ................................ 35
6.7 Overall Target Performance for the 2018 – 2022 SBP ........................................ 41
6.8 Implementation of the 2018 – 2022 SBP............................................................. 41
6.9 Key Assumptions/Critical Success Factors ......................................................... 41
7. MARKETING PLAN ......................................................................................... 42
7.1 Stakeholder Analysis and Expectations............................................................... 42
7.2 Centre’s Customers ............................................................................................ 43
7.3 Business Geographical Coverage ........................................................................ 44
7.4 Competition Risk and Potential Market .............................................................. 44
7.5 Marketing Strategies........................................................................................... 45
7.5.1 Advertising ........................................................................................... 46
7.5.2 Marketing Literature ............................................................................. 46
7.5.3 Promotional Activities .......................................................................... 46
7.5.4 Corporate Social Responsibility ............................................................ 46
8. OPERATING PLAN .......................................................................................... 47
8.1 Operating Programme ........................................................................................ 47
8.2 Current and Envisaged Services to be Offered .................................................... 47
8.3 Operating and Utilization Capacity ..................................................................... 48
8.4 Power Projects and New Learning Centre ........................................................... 49
8.5 Other Fixed Assets Requirements 2018-2022 ..................................................... 49
8.6 Projected Revenue and Expenditure Summary 2018 – 2022 ............................... 49
9. GOVERNANCE STRUCTURE ......................................................................... 50
9.1 Board of Trustees ............................................................................................... 50
9.2 The Committees of the Board ............................................................................. 50
9.3 Management and Staff Establishment ................................................................. 51
9.4 Review of the Organizational Structure .............................................................. 54
10. FINANCIAL PLAN 2018– 2022 ......................................................................... 55
10.1 Key Underlying Assumptions 2018-2022 ........................................................... 55
10.1.1 Macro-economic Assumptions .............................................................. 55
10.1.2 Revenue Assumptions and Notes .......................................................... 55
10.1.3 Expenditure Assumptions and Notes ..................................................... 56
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10.1.4 Human Capital Management Assumptions............................................ 56
10.1.5 The Regulatory Environment ................................................................ 56
10.2 Projected Income & Expenditure 2018-2022 ...................................................... 57
11. IMPLEMENTATION, MONITORING AND EVALUATION (M&E) ................ 58
12. CONCLUSION .................................................................................................. 59
APENDICES ...................................................................................................................... 62
v
LIST OF TABLES
Table 1 Social Economic Benefits of the Centre
Table 2 Colour Coded Rating Scale
Table 3 Summary Institutional Rating 2013-2017
Table 4 Participation by Country 2013 to 2017
Table 5 SWOT Card
Table 6 Risk identified in 2018
Table 7 KGRTC’s Customers
Table 8 Marketing Strategies
Table 9 Operating Hours
Table 10 Additional Facilities from the Proposed Investments
Table 11 Operation and Utilization capacity
Table 12 Investment Projects [Power Projects & Learning Centre]
Table 13 Additional Capital Items
Table 14 Projected Income and Expenditure 2018-2022
Table 15 Direct and Indirect Labour
LIST OF FIGURES
Figure1 KGRTC Risk Matrix
Figure 2 KGRTC Strategy Map
Figure 3 Stakeholder Map
LIST OF CHARTS
Chart 1 Participation by Country
Chart 2 Participation by Region
LIST OF GRAPHS
Graph 1 Course Participants Trends 2013 to 2017
Graph 2 Conference & Seminar Facilities Utilization
APPENDICES
Appendix I Performance Review of The KGRTC Business Plan 2013-2017
Appendix II (a) Proposed Organogram
Appendix II (b) Current Organogram
Appendix III Current and Proposed Positions and Titles
Appendix IV PESTEL Analysis
Appendix V Historical Statement of Income and Expenditure [2013-2017]
Appendix VI Projected Statement of Income and Expenditure [2018-2022]
Appendix VII Projected Statement of Financial Position [2018-2022]
Appendix VIII Investment Projects [2018-2022]
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ABBREVIATIONS
CBU Copperbelt University
COMESA Common Market for Eastern and Southern Africa
DRC Democratic Republic of Congo
DSTV Digital Satellite Television
EAC East African Community
EEC Eswatini Electricity Company
GDP Gross Domestic Product
GRZ Government of the Republic of Zambia
GWh Giga Watt hour
ISO International Organization for Standardization
JICA Japan International Cooperation Agency
KGRTC Kafue Gorge Regional Training Centre
ME Ministry of Energy
MoHE Ministry of Higher Education
MOU Memorandum of Understanding
NAPSA The National Pensions Scheme Authority
NGO Non-governmental Organization
NORAD Norwegian Agency for International Development
ROA Return on Assets
SADC Southern African Development Community
SAPP Southern African Power Pool
Sida Swedish International Development Agency
SWOT Strengths, Weaknesses, Opportunities and Threats
TANESCO Tanzania Electric Supply Company
TEVETA Technical Education, Vocational and Entrepreneurship Training Authority
UETCL Uganda Electricity Transmission Company Limited
UNZA The University of Zambia
WAPP West African Power Pool
ZAMINEX Zambia Industrial and Mining Exposition
ZESA Zimbabwe Electricity Supply Authority
ZESCO ZESCO Limited
ZRA Zambia Revenue Authority
IHA International Hydropower Association
INSHP International Network on Small Hydropower
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BUSINESS DESCRIPTION
Name of Business : Kafue Gorge Regional Training Centre
Nature of the Business : Training
Main Contact Person : The Director
Business Address : P.O. Box 35, Namalundu, Chikankata District,
Zambia
Or
P.O. Box 32774, Lusaka, Zambia
Telephone Numbers (+260-
211)
: 371007/8, 371076, 371085/371084, 363749
Mobile Numbers (+260) : 966 940645, 953 821697, 976 668843
Email Address : [email protected]
Website : www.kgrtc.org.zm
Facebook Page
Business Bankers
:
:
www.facebook.com/kafuegorgeregionaltrainingcentre
1. Barclays Bank Zambia PLC
: 2. Stanbic Bank Zambia Ltd
Business Legal Documents : Trust Deed, Certificate of Registration with the
Registrar of Societies
Business Lawyers : ZESCO Legal Directorate
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KGRTC BOARD OF TRUSTEES
Name Designation Organization/ Country
1. Eng. Fidelis Mubiana Board Chairperson ZESCO, Zambia
2. Mr. Nathan K. Daimon Trustee TANESCO, Tanzania
3. Ms. Noncedo Mamba Trustee EEC, Eswatini
4. Prof. Mundia Muya Trustee UNZA, Zambia
5. Mrs. Rhoda K. Mwale Trustee ZESCO, Zambia
6. Mr. Daphter Namandwa Trustee ESCOM, Malawi
7. Mr. Rufaro Pasipanodya Trustee ZESA, Zimbabwe
8. Mr. Muzano A. Simumba Trustee MoHE, Zambia
9. Mr. Arnold Simwaba Trustee ME, Zambia
10. Mr. Fredrick C. Zesooli Trustee UETCL, Uganda
11 Eng. Kaela K. Siame Trustee KGRTC, Zambia
12. Mr. Jones Nguluwe Observer ZESCO, Zambia
KGRTC BOARD COMMITTEES
Finance and Administration
Committee
Mr. Fredrick Zesooli Chairperson
Mrs. Rhoda K. Mwale Member
Prof. Mundia Muya Member
Dr. Egret C. Lengwe Member
Eng. Kaela K. Siame Member
Audit and Risk Committee
Mr. Rufaro Pasipanodya Chairperson
Mr. Nathan Daimon Member
Ms. Noncedo Mamba Member
Mr. Joshua Malupenga Member
Technical Committee
Mr. Daphter Namandwa Chairperson
Eng. Fidelis Mubiana Member
Mr. Muzano A. Simumba Member
Mr. Arnold Simwaba Member
Mr. Jones Nguluwe Member
Eng. Kaela K. Siame Member
KGRTC MANAGEMENT
Name Designation
1. Eng. Kaela. K. Siame Director
2. Eng. Brian H.M. Makungo Training Manager
3. Mr. Evans Mweemba Bursar
4. Mrs. Aydlinn Liswaniso Marketing and Public Relations Manager
5. Mrs. Linda K. Nyirenda Audit and Risk Manager/ Secretary Audit
and Risk Committee
6. Mrs. Maureen M. Salimu Registrar/ Board Secretary
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EXECUTIVE SUMMARY
This Strategic Business Plan (SBP) outlines the aspirations and priorities of the Kafue Gorge
Regional Training Centre (“KGRTC” or “Centre”) in the short to medium term. These
priorities are delineated into strategic objectives in order to address the breadth of the
organization’s mandate. The SBP Plan spans a five year period from 2018-2022 and is
structured in the Balanced Scorecard Framework.
The KGRTC SBP 2018 – 2022 has been developed taking into consideration the current global
and local economic indicators, selected African regional bodies’ developmental plans (ICA
2016)1, the Zambian 7th National development Plan (7NDP)2, past performance of the KGRTC
Strategic and Business Plans, and a variety of views and ideas from both within and outside
KGRTC. The SBP was developed under the general theme “Diversification for Growth”, taking
into account the various projects and investments the Centre plans to undertake.
The Business Plan which expired on 31 December 2017 is considered as Phase I in the Business
Development of KGRTC under which a number of initiatives aimed at achieving self-
sustainability of the Centre were developed. These included conducting a number of feasibility
studies on the various identified projects. The SBP 2018 to 2022 is considered as Phase II of
the Business Development and will focus on the implementation of the various initiatives
developed under Phase I.
As a training Centre, our ultimate goal is to develop skills and competencies in energy
technologies in a manner that facilitates sustainable energy development for socio-economic
transformation in Sub Sahara region. Like an eagle we are determined to remain focused on
our role, and show strength and dynamism in discharging our mandate.
The Centre’s Vision and Mission remain focused on developing competencies in Energy
Technologies. The core values were revised to incorporate Quality and Respect for All
replacing Excellence and Zero Tolerance to Corruption.
The SBP 2018 to 2022 proposes change of title for some positions on the KGRTC establishment
in order to align them with the current business practice and industry norm.
Our main thrust during the SBP period will be to achieve the following:
1. Train a minimum of 2,500 course participants in energy technologies in Africa by 2022.
This is comparable to the total number of course participants trained during the last five
years ended 31 December 2017.
1www.icafrica.org – Regional Power Status in African Power Pools, 2016 update
2www.mndp.gov.zm – 7th National Development Plan, Zambia
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2. Commission and operate the 200 Kilo Watts Chipota Falls Mini Hydropower Station
by June 2021. This project is being financed by UNDP and KGRTC under the China-
Zambia South to South Renewable Energy Technology transfer project.
3. Commission and operate the 13 Mega Watts Small Hydropower Station under the
Kafue Gorge Lower Hydropower Project by ZESCO. In this plan it is assumed that this
power station will be handed over to KGRTC in June 2022.
4. Commence the construction of a New Learning Centre by 2019 and reach completion
by 31 December 2022.
5. Mobilize financing for the 10 Mega Watts Small Hydropower Station and commence
construction by 2022.
6. Mobilize financing for 7.5 Mega Watts KGRTC Wind Farm by 31 December 2019
and target10% completion by 2022 based on certified works.
7. Assume the management of selected ZESCO’s hospitality business operations in
Siavonga, Kafue Gorge and Itezhi Tezhi. This will go a long way in supporting the
proposed expansion in KGRTC seminars and conference services.
All the above projects and activities are designed to enhance our training capacity and financial
sustainability.
The Trust Deed also stipulates specific functional areas of focus and related expectations. This
SBP therefore integrates these obligations, stipulations and functions into priority areas and
discusses how these are going to address the overall mandate of the organization within the
time-frame specified.
OFFICIAL SIGN OFF
It is hereby certified that this Strategic Business Plan 2018-2022:
1. Was developed by the Board of Trustees of KGRTC;
2. Takes into account all the relevant policies in particular the 7NDP, legislation and other
mandates for which KGRTC is responsible; and
3. Accurately reflects the strategic outcome oriented objectives, which KGRTC will
endeavor to achieve over the period 2018-2022.
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1. BACKGROUND OF THE KAFUE GORGE REGIONAL TRAINING CENTER
1.1 Brief History
Kafue Gorge Regional Training Centre (“KGRTC” or “the Centre”) was established
and registered as a Trust in 1989 with the core business being Hydropower Training,
Conferences and Accommodation. ZESCO Limited – the electricity utility of Zambia,
Norwegian Agency for Development Cooperation (Norad) and Swedish International
Development Cooperation Agency (Sida) funded the Centre as a project.
The Centre has been receiving assistance from the Royal Norwegian Government and
the Royal Swedish Government through Norad and Sida respectively since the inception
of the project. Norad and Sida funded the capital equipment and rehabilitation of the
facilities at the Centre. In addition, Norad and Sida offered scholarships to a number of
course participants from the utilities in the region.
ZESCO is a key institution that established the Centre as part of its staff training needs.
Subsequently between 1997 and 2000, ZESCO ceded the Centre to the Southern African
Development Community (SADC) with autonomy for self-management through a
Board of Trustees. KGRTC thus became a SADC In-Service training facility targeted
at building capacity in mainly the electricity utilities within the region. ZESCO
however, maintains keen interest in the development of the Centre. In terms of
ownership, ZESCO can be considered as the key stakeholder as it provides a grant which
caters for over 50 percent of the Centre budget through facility use and staff
emoluments. ZESCO is committed to KGRTC in the long term. This commitment is
important as it assures of institutional stability and sustainability.
KGRTC has continued to grow over the years and notable among its achievements have
been the following:
a) ISO 9001 certification, as well as integration of ISO 22000 and ISO 50001;
b) High standard facilities;
c) Development of demand-driven technical courses;
d) Installation of electrical training Simulators; and
e) Availability of qualified staff.
1.2 Legal Mandate and Enabling Instruments
1.2.1 Country Agreement
The Government of the Republic of Zambia and the Governments of the Royal
Kingdoms of Norway and Sweden entered into an agreement on 11 July 1997.
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This set forth the terms under which Norway and Sweden were to render
financial assistance to the Centre during the period 1997 and 1999. The purpose
of the project was to increase the efficiency, competence and capacity of
KGRTC as a regional body. The project cost amounted to US$ 5, 833, 846
financed by Norway, Sweden, ZESCO, SADC Utilities and income from tuition
fees, conferences and seminars.
1.2.2 Memorandum of Understanding with ZESCO
A Memorandum of Understanding (MoU) was signed on 12 September 1997
between ZESCO Limited and KGRTC. The main provisions of the MoU are as
follows:
a) That the Centre be delinked from ZESCO and be handed over to the Board
of Trustees.
b) The Chairmanship of the Board of Trustees be vested in ZESCO.
c) Income generated by the Centre shall remain with the Centre and be
controlled by the Centre management in cooperation with the Board of
Trustees.
d) The Centre may establish its own terms and conditions of service in order
to attract high calibre personnel thereby maintaining a high international
standard as a Regional Training Centre.
e) ZESCO as a host utility company would continue to support the Centre
in the same functions and operations as before. This shall include but
would not be limited to:
i) Secondment of staff to the Centre;
ii) Free use of the campus area;
iii) Free use of the electricity and water;
iv) Free use of the power house for practical training;
v) Provision of staff accommodation; and
vi) Provision of transport and fuel.
1.2.3 Trust Deed
The Trust Deed provides the rules and regulations of how KGRTC is to be
managed. It provides for:
a) Objects of the Trust;
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b) Borrowing powers of the Trustees;
c) General powers of the Trustees;
d) Proceedings of the Trustees;
e) Appointment of the Director of the Centre;
f) Appointment of the Secretary of the Board of Trustees;
g) Appointment of Auditors;
h) Power to appoint a sub-committee to deliberate on matters concerning
administration of the Trust; and
i) Liability of Trustees.
1.3 Socio-Economic Benefits of the Centre
Table No. 1: Social Economic Benefits of the Centre
Factor Description
1. Employment
Creation
KGRTC currently has 66 employees and this number is expected to
increase as the Centre embarks on its strategic themes for the period
2018 to 2022. In addition to the existing employees, the Centre
engages members of the local community to undertake short-term
projects. KGRTC also supports internship placement and these are
usually drawn from the local community.
2. Transfer of
knowledge and
skills
By its very nature, the Centre is an institution which will
continuously be involved in the transfer of specialized knowledge
and skills in the key focus areas for training.
3. Contribution to
the National
Treasury and the
Local Council
The Training Centre will continue to contribute to the national
treasury and the local council through payment of various forms of
taxes, levies, fees and other statutory requirements.
4. Corporate Social
Responsibility
The Centre has a strong policy on corporate social responsibility
and shall continue to support various community based activities
including donations to various institutions. The Centre allocates 5
percent of its annual marketing budget to corporate social
responsibility activities.
5. Offering Market
Opportunities
The existence of KGRTC inevitably offers market opportunities to
the various businesses in the local community and beyond, which
supply various goods and services to the Centre.
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1.4 Services Offered
1.4.1 Training
The Centre offers training in the following five (5) core focus areas:
a) Power Systems Operations;
b) Engineering Maintenance;
c) Engineering Applications and Management;
d) Safety, Health, Environment and Quality Assurance; and
e) Corporate Governance, Management and Leadership Development.
The scheduled training programmes range in duration from two days to thirteen
weeks and are conducted on a residential basis. All the courses are certified at
skills award level for competency under the Technical Education, Vocational
and Entrepreneurship Training Authority (TEVETA) in Zambia. Appendix II
details the courses offered and country participation.
In addition, the Centre offers tailor-made training programmes and conducts on-
site training at clients’ premises in order to cost effectively meet the specific
needs of individual organizations.
1.4.2 Consultancy Services
KGRTC offers consultancy services in technical and non-technical areas
including energy management, quality assurance, energy resource assessment
and in the area of management and organization.
1.4.3 Conference and Seminar Facilities
The Centre has earned itself an international reputation in the provision of
excellent accommodation and conference facilities. The following facilities are
offered:
a) Conference Halls
i) Africa Conference Hall
A spacious, air conditioned Conference Hall, which sits a
maximum of 100 delegates. It is equipped with a big LED screen
television, white board, public address system, LCD projector and
flip chart stand.
ii) Kilimanjaro Board Room
An immaculate, air-conditioned venue which sits a maximum of 18
delegates. It is equipped with white board, television, flip chart
stand, and LCD projector which are provided on request.
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iii) Meeting Rooms
There are two meeting rooms, Kariba and Victoria, and a computer
based training room. The sitting arrangement can be set according
to delegates’ needs. They have similar facilities to Kilimanjaro
Boardroom.
1.4.4 Accommodation
The Centre has seventy seven (77) self-contained and well furnished rooms with
comfortable study areas to cater for all clients. KGRTC provides free Wi-Fi to
all clients. The following types of accommodation are available:
a) Executive Rooms
The Centre has twelve (12) self-contained executive rooms, fully
furnished with a queen size bed, DSTV, fridge, with air-conditioning.
b) Standards Rooms
KGRTC has fifty six (56) self-contained standards rooms. Each room has
a double bed, en-suite bathroom, DSTV, study area, fridge and is air-
conditioned.
c) Twin Bedded Rooms
The Centre has nine (9) self-contained twin bedded rooms. Each room has
two three-quarter beds, DSTV, study area, fridge and en-suite bathroom
and is air-conditioned.
1.4.5 Catering Facilities
The Centre has two (2) restaurants Lule and Nidelva, which offer a variety of
menus at competitive market rates.
1.4.6 Other Facilities
a) Oasis Mingling Bar
The Oasis mingling outdoor bar stocks a wide variety of beverages.
Guests have free access to the cash bar with DSTV entertainment. In
addition, fast food take away services are available.
b) Gymnasium
KGRTC has a gymnasium for clients who want to keep fit at no extra
charge. However, membership is open to the local community and other
walk-in guests at a fee.
c) Transport and Business Centre
KGRTC hires out transport to guests and also provides secretarial services
through the Business Centre for printing, binding, photocopying etc.
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2. ORGANIZATIONAL ASSESSMENT
2.1 Review of the 2013 – 2017 Business Plan
KGRTC formulated a five year Business Plan for the period 2013 -2017. The said
Business Plan came to an end in December 2017. In the development of the new
Strategic Business Plan for the period 2018-2022 a review of the previous plan was
carried out to assess the key achievements and challenges faced during the
implementation of the plan.
The Strategic Objectives of the previous Business Plan for the period 2013 -2017 were
as given below. These objectives were reviewed under each of the three thematic areas
as follows:
Thematic Area 1: Financial Performance
a) To provide quality training and increase revenue by 5% annually.
b) To increase market share by 10%.
c) To diversify the training package to satisfy the customer requirements.
Thematic Area 2: Increased Training Capacity in Energy Technologies
a) To design and Develop new courses in energy technologies.
b) To acquire and install infrastructure for new energy technologies.
c) To develop a mini – hydropower station.
d) To establish and maintain effective formal relations with other institutions.
Thematic Area 3: Sustainability
a) To effectively develop and maintain human resources.
b) To provide cost effective logistical and administrative support services.
c) To review the KGRTC Business Plan.
The end of term performance review was carried out by Management in order to assess
the overall institutional performance against the 2013-2017 Business Plan Vision,
Objectives and Strategic Indicators. In implementing the Business Plan for the period
2013 – 2017, KGRTC had ten (10) Strategic Objectives and Twenty-three (23) Key
Performance Targets (KPTs). The overall score for the institutional performance
was 64% against the predetermined targets set in the Business Plan.
In reviewing the performance of the organisation, each objective and performance target
was subjected to an in-depth review. The objectives were considered to be cross cutting
and therefore, the review focused on the processes. In addition, a performance review
tool was developed with a rating scale of 1 to 3 as indicated in Table 2.
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Table 2: Colour Coded Rating Scale
Rating Scale Colour code % Range
3 = Good >70%
2 = Average/Moderate 50 - 70%
1 = Below Average <50%
During the performance review process, management provided evidence of objective
achievement based on the identified means of verification. A summary of the highlights
of the institutional report are as indicated in Table 3.
Table 3: Summary Institutional Performance Rating [2013 – 2017]
No. Description Target
Score
Actual
Raw
Score
Raw
Score
(%)
SO 1 To provide quality training and increase revenue
by 5% annually [04 KPIs x 5 points] 20 17.4 87%
SO 2 To increase market share by 10% [02 KPIs] 10 7.0 70%
SO 3 To diversify the training package to satisfy the
customer requirements. [02 KPIs] 10 8.0 80%
SO 4 To design and develop new courses in energy
technologies [04 KPIs] 20 13.0 65%
SO 5 To acquire and install infrastructure for new
energy technologies [02 KPIs] 10 6.0 60%
SO 6 To Develop a mini – hydropower station [02
KPIs] 10 4.0 40%
SO 7 To establish and maintain effective formal
relations with other institutions [3 KPIs] 15 6.0 40%
SO 8 To effectively develop and maintain human
resources [2 KPIs] 10 8.0 80%
SO 9 To provide cost effective logistical and
administrative support services [1 KPI] 05 2.4 48%
SO 10 To Review the KGRTC Business Plan [1 KPI] 05 2.0 40%
Total Score 115 73.8 64.17%
Overall Performance Rating (%) 64.17%
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The overall performance score of 64% highlighted above is mainly explained by the
following among other factors:
i) Constrained financial resource base to undertake capital projects
ii) Limited space at the training center in terms of accommodation and conference
facilities.
iii) Some of the measures in the Business Plan were not clearly outlined.
Initiatives to address these challenges have been identified and incorporated in the new
Strategic Business Plan 2018-2022 Corporate Scorecard.
A detailed review of the 2013 -2017 Business Plan is given in Appendix I.
The Business Plan 2013 to 2017 also took into account the proposed investment in a
Small Hydropower Station and other infrastructure that would impact the operations of
the Centre beyond the planned period. An investment of about US Dollars 13.7million
was required to turn around the fortunes of the Centre through investment in the small
hydropower station, construction of a new learning Centre, procurement of power
systems simulators and development of new courses.
However not all planned activities were achieved. Consequently the Business Plan had
to be reviewed and executed in two phases. The first phase was to be implemented for
the purpose of undertaking feasibility studies, which were grant financed by Sida to
ascertain the actual investment costs for implementing the objectives of the Business
Plan.
The financial activities which were planned to ensure self-sustainability were not met
especially the internally generated income activities in training and other income
support areas such as seminars and conferences, accommodation and restaurant. The
external income support from ZESCO was more than fulfilled but, KGRTC needed to
reduce this dependence by increasing the internally generated income against the
ZESCO support. The planned support from ZESCO was 48% of the total income and
KGRTC internally generated income was 43% of the total income.
The first review of the business plan was done in 2016 and revealed a two-year behind
schedule and some of the financial projections, assumptions and indices had drastically
changed due to global and local economic disturbances, which affected the
implementation of the set benchmarks. The review needed to be done consistently on
an annual basis to ensure deviations were monitored and adjustments done to move with
an updated Business Plan.
The second phase was to be executed as the final implementation of the Business plan
by constructing the planned investments of the new learning centre, the small
hydropower station, simulators and investments into solar and wind technology. The
Board of Trustees approved phase one activities in line with the funding agreement with
Sida but was delayed due to authorization processes between Sida and KGRTC.
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All set benchmarks for the grant were met and feasibility studies completed except for
the wind technology project which will end in April 2018. Sida had provided a
Transaction Advisor, who is based in South Africa on the USAID Power Africa project,
to review the feasibility studies reports and guide KGRTC on the best financing model
for soliciting of funding for phase two of the Business development of KGRTC.
2.1.1 Course Participants from 2013 to 2017
Between 2013 and 2017 a total of twenty-six (26) countries participated on
KGRTC training programmes with a cumulative record of more than 2,347
course participants. The number of course participants had generally been
increasing on average per year against the set target with the exception of 2015
when KGRTC failed to meet the planned number of course participants.
Graph 1: Course Participants Trend 2013 to 2017
Zambia sent the most course participants to the Centre for training making up
42% of the total. This comprised participation from ZESCO, National Electricity
Utilities, Independent Power Producers, Water Utilities, Mining and Sugar
Companies. This was followed by Malawi and Angola with 12% and 8%
respectively. The SADC countries had utilized the centre far more than the other
regions.
Participation by other organizations in the region accounted for 38%, which was
rather low considering the Centre, was the only one of its kind in the region.
The increase in participation by some of the SADC countries such as Angola
had been due to the Association of Power Utilities in Africa (APUA)
scholarships through the African Network of Centre’s of Excellence
(ANCEE).Historically, for the years 2013 to 2017, the split in numbers of course
participants by country were as shown in Table 4.
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Table 4 : Participation by Country 2013 to 2017
S/N Country Participants Percentage
1 Angola 198 8%
2 Bhutan 2 0%
3 Botswana 53 2%
4 Burundi 2 0%
5 Cameroun 1 0%
6 Congo DR 53 2%
7 Cote d'Ivoire 4 0%
8 Egypt 6 0%
9 Ghana 82 3%
10 Kenya 73 3%
11 Lesotho 3 0%
12 Liberia 26 1%
13 Malawi 277 12%
14 Mozambique 41 2%
15 Namibia 13 1%
16 Nepal 2 0%
17 Nigeria 6 0%
18 Rwanda 76 3%
19 South Africa 13 1%
20 Sudan 6 0%
21 Swaziland 94 4%
22 Tanzania 117 5%
23 The Gambia 21 1%
24 Uganda 174 7%
25 Zambia 977 42%
26 Zimbabwe 27 1%
Actual No. of Course Participants 2,347 100%
2.1.2 Conference and Seminar Facilities Utilization from 2013 to 2017
Over the Business Plan period of 2013 to 2017, utilization trends of the
conference facility had mixed results but this was largely negative. This was
caused by the increased number of courses conducted at KGRTC and had made
it difficult for seminar and conference clients with large numbers over ten (10)
to book the facilities. There was still a big potential for meetings and conferences
on energy in Africa.
Graph 2: Conference and Seminar Facilities utilization
2013 2014 2015 2016 2017
Seminar Participants 1,946 1,310 1,163 551 673
-
500
1,000
1,500
2,000
2,500
Num
ber
Of P
artic
ipan
ts
Seminar/Conference Participants
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3. RATIONALE FOR STRATEGIC BUSINESS PLAN 2018-2022
KGRTC implemented its Business Plan for the period 2013 – 2017. Following its
expiry, there was need to develop a new strategy that would guide KGRTC through the
next five (5) years.
The new Strategic Business Plan (SBP) has been developed to address the challenges
and lessons identified from the performance audit of the previous Business Plan (which
included a stakeholder assessment), reduce the expectations gap of stakeholders, and
enhance delivery of the KGRTC mandate. The plan has also been designed to maximize
the KGRTC’s contribution to the attainment of national and international human capital
development agenda in the energy sector. It provides the Board of Trustees strategic
vision, mission and strategic themes or areas of strategic focus in the next five years in
alignment with the Trust Deed, Country Agreements and Memorandum of
Understanding (MoU) with ZESCO. It highlights how KGRTC will contribute, within
its mandate, to build capacity in energy technologies.
4. THE PLANNING FRAMEWORK
In formulating the SBP 2018-2022, the review of the Business Plan 2013-2017 was the
starting point to inform the development of the new Strategy. The reported performance
outcomes were validated using the identified tools or evidence of performance
achievements. Consultations were held with electricity utilities and collaborative
government agencies to get their perspective through regular stakeholder consultative
forums.
The Balanced Scorecard planning framework was used for a systematic identification
of what needed to be achieved. Central to the use of the Balanced Scorecard was the
adoption of the “systems thinking” approach where the starting point in planning was
the intended result.
The consulting process used was participatory with Management for in-depth analysis
of the desired strategic direction, identification of the pillars or strategic themes to guide
the strategic analysis, development of the corporate strategy map, Balanced Scorecard,
with clear targets, measurement parameters, initiatives and budgets.
The strategy formulation process also included an assessment of how both the external
and internal factors may shape the future operating environment. The situational
analysis that was utilized was the PESTEL which included, inter alia, political
developments, major economic events, relevant and significant social cultural
developments, technological developments in the energy sector and legal and policy
framework.
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5. SITUATIONAL ANALYSIS
5.1 PESTEL Analysis
KGRTC conducted a situational analysis from a global, regional and national
perspectives using PESTEL (Political, Economic, Social, Technological,
Environmental, Legal), which will enable KGRTC to be cognisant of external factors
that might have an impact on how it conducts business and delivers on the mandate.
The situational analysis is one of the tools that was utilized to inform our strategic
planning process. PESTEL analysis was conducted under the following headings and
further detailed in Appendix iv:
i) Political Factors – Generally, political factors were assessed to be reasonably
positive in the SADC region3 and the rest of Africa. At national level, there have
been some political decisions that will have an impact on KGRTC’s ability to deliver
on its mandate and are going to be addressed in this strategic business plan. The
Government launched the 7NDP in 2017 which aims to grow and diversify the
energy sector. This presents an opportunity for KGRTC to diversify its training
programmes. However, the government also announced the policy shift to train
public service staff in-house. This may negatively affect the revenue inflows to
KGRTC as the government ministries contribute more than 50% of seminar and
conference participants.
Our strategic response to this factor is to increase stakeholder engagement and
formulate attractive conference packages to attract other sectors and ensure long
term financial sustainability on KGRTC.
ii) Economic Factors – At national level, the Zambian economy has performed well in
recent years, with strong growth and modest inflation. However, the economy came
under strain in 2015 and 2016 as external headwinds and domestic pressure
intensified. Gross Domestic Product (GDP) grew at 2.8% in 2015 and 3.3% in 2016,
much slower than the average 7.4% between 2004 and 2014 (2016, 2017 national
budget speech). At regional level, slow economic growth was noted. The SADC
region registered an estimated average growth rate of 1.4% in 2016 compared to
2.3% in 2015. The regions’ growth has been increasing at a decreasing rate since
post global crisis in 2009.
Electricity Tariffs – the drive towards cost reflective remains a top priority for the
member utilities in the SADC region. For KGRTC, cost reflectivity is a necessary
condition to ensure long term viability and sustainability of the mini hydropower
projects that will be constructed during the period of this Strategic Business Plan.
Further changes in some power utilities undergoing restructuring were also noted.
In addition, there has been an increase in the number of utilities in the region
developing their own training schools.
3Inside SADC, Secretariat Monthly Newsletter Issue 2, February 2018
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Our planned strategic response to this threat (competition) is to revitalise and invest
in research and innovation in developing skills by investing in hands-on training
facilities and marketing.
This plan further also takes into account the effects of other economic variables
namely unstable inflation rates and unfavourable exchange rates.
To address the issue of unfavourable local lending rates, appropriate hedging
mechanisms and use of alternative modes of financing will be explored when
sourcing financing for the planned projects.
iii) Social Factors - There has been increased diversity of cultural backgrounds among
the people coming for training and conferences at KGRTC. We will continue to
employ an inclusive approach and respect for all in our business dealings.
iv) Technological Factors -The shift to renewable energy technologies (RETs) by
consumers might introduce some newer or updated technology to the country and
thus require KGRTC to update its training framework, practices and update or
acquire new skills. The implementation of the SNDP puts emphasis on RETs as
part of the energy mix.
Zambia’s Vision for Information Communication Technology (ICT) is to transform
Zambia into information and knowledge based society supported by increased
access to ICTs by all citizens by 2030. Achieving this vision will require effective
and efficient high level coordination of ICT interventions across the public service,
KGRTC inclusive.
At a regional level, a SADC Protocol on Science, Technology and Innovation also
promotes development and harmonisation of science and technology and innovation
policies and advocates investment in research and development. To maintain its
competitive advantage KGRTC will invest in integration of information and
communication systems and enhance the website into an interactive business portal
accessible by all regional members and the rest of Africa.
v) Environmental Factors - Environmental issues such as climate change, present
potential hazards to the public and the management thereof poses particular
challenges given that the issues fall within the purview of multiple stakeholders,
which creates a lack of ownership as to who is to lead. Strategies relating to the
protection of the public for these types of exposure scenarios will require relevant
government departments and other entities to cooperate and put in place a
framework for the protection of the public requiring a coordinated and cohesive
effort from all role players.
vi) Legal Framework – The existing legal framework creates an enabling environment
for the projects that KGRTC plans to undertake. Specifically, for the hydropower
and wind projects, the following pieces of legislation will have an impact on the
operations of the Centre:
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a) Electricity Act of 1995 (amended 2003): The act was formulated to
administer the generation, transmission and distribution of electricity in
Zambia. The players providing this service are subject to regulation.
b) Rural Electrification Act of 2003: The act established the Rural
Electrification Authority (REA) and equipped it with a Rural Electrification
Fund. REA is responsible for implementing Rural Electrification Master
Plan by facilitating the creation and monitoring of the operations of rural
electrification organizations or companies. KGRTC will ensure that Chipota
Mini-hydropower Station complies with the provisions of the Rural
Electrification Act.
c) The Zambian Grid Code of 2006: The Zambia Grid Code was gazetted in
October 2013 with the objective of facilitating open and non-discriminatory
access to the transmission system in order to ensure that the goals of
liberalization of the electricity sector, primarily enhanced efficiency and
more rapid electrification, are achieved. With this open access provisions
under this code, KGRTC will be able to evacuate power into the main grid
at an agreed feed-in-tariff.
5.2 SWOT Analysis
The critical assessment of the environment in which KGRTC operates led to
identification of four elements that have influence on operations of KGRTC. These
forces have been summarized in a framework commonly called SWOT Analysis
detailed here below. This analysis presents external influences and trends; strengths and
weaknesses in the thematic areas which should be addressed to enable KGRTC to
achieve the desired energy training programmes.
The assessment presents the strengths, weaknesses and opportunities and is shown in
Table 5.
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Table 5: KGRTC SWOT Card STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
Sta
keh
old
ers
i. Track record of good
industrial relations
i. Recognition of KGRTC as a Centre of
excellence by APUA.
ii. Good partnerships and accreditation to
institutions such as ICH, IHA, SBB of
Canada, UNZA, CBU, ICSHP
iii. Secretariat of the African Hydro
Symposium
iv. Increased investment in the energy
sector in Africa.
v. Electricity supply industry
restructuring
i. Possible termination of
the MOU between
KGRTC and ZESCO
ii. Utilities establishing
their own training
Centres
Fin
an
cial
Ste
ward
ship
i. Proven record in managing
internal and funds from
cooperating partners.
i. Dependence on ZESCO for
emoluments.
i. Willingness by Sida to provide
financial guarantor for the small
hydropower project and Wind Farm
power project.
ii. Possibility by cooperating partners to
offer financial support to KGRTC
business development.
iii. Possibility to access funding under
GETFiT and REFiT programs.
iv. Possibility to access funding for
research and innovation
i. General rise in inflation
ii. Volatility of exchange
rates
iii. Economic instability in
the region.
iv. Possible droughts,
famine, floods,
epidemics and other
natural disasters
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STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
Bu
sin
ess
Pro
cess
es i. Integrated Management
Systems implemented for
ISO 9001, ISO 22000 and
ISO 50001 Standards.
i. Not fully integrated ERP to
support HR, finance, and
business processes
Org
an
izati
on
al
Cap
aci
ty
i. Located within the
vicinity of one of the
biggest Hydropower
Stations in the country
ii. Grade One registered
institution with
TEVETA.
iii. Adequately qualified
personnel to deliver
quality services.
iv. State of the art
training facilities.
i. Reliance on ZESCO facilities
to conduct practical training
ii. Inadequate staff to support the
expanded business activities
for training, research and
facility maintenance.
iii. Lack of translation equipment
iv. Lack of multi lingual skills by
staff to deliver courses &
communicate in French &
Portuguese.
v. Limited Seminar/workshop
venues.
vi. Inadequate guest room
accommodation.
vii. Lack of staff accommodation.
i. Alternative energy sources such as
solar, thermal, wind and biomass
ii. Availability of translation
equipment.
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5.3 Risk Management
KGRTC recognizes that risk management is an integral part of good management
practice. Consequently, as part of the strategic organizational analysis, a risk assessment
was conducted and it was determined that KGRTC was exposed to the following
strategic risks highlighted in Table 6 and further detailed in the Comprehensive
KGRTC Risk Matrix.
Table 6: Risks identified in 2018
ID Type of Risk Definition
1. Corporate Governance
Risk (Mainly fraud risk)
The risk that insiders (employees) will not act in the best
interest of other stakeholders of the Centre.
2. Strategy Execution Risk The risk that business strategy execution will fail.
3. Strategy Forecast Risk The risk that the Centre's strategy will be off the mark.
4. Innovation Risk The Risk that the Centre fails to adopt to the rapid pace of change and innovation
5. Competitive Risk The risk of a decline in competitive advantage due to
emerging new markets/customer preferences
6. Technology Risk The risk that the Centre’s technology strategy fails to
produce desired results
7. Change Management Risk The risks associated with organizational change
8. Program & Project Risk The risks associated with program & project failures
9. Marketing & Sales Risks The risk that marketing and sales forecasts and metrics will
fall short of expectations
10. Operational Risks
The prospect of loss resulting from inadequate or failed
procedures, systems or policies. Any event that disrupts business processes.
11. Security Risk The risk of information security incident (loss of data)
12. Liability Risk The risk that products, services or corporate execution leads
to legal liability issues.
13. Compliance Risk The risk of non-compliance with regulations and law.
14. Sustainability Risk The risk that ZESCO or any other sponsors withdraws its
support
15. Reputational Risk The risk of bad publicity emanating from the Centre’s
actions or inaction
16. Financial Risk The risk that the Centre is unable to raise sufficient capital
to fund operations.
17. Economic Risk The risk of collapse of the global financial system or the
financial system of a country.
18. Political Risk The risk that the political environment in the region will turn
hostile
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5.3.1 Analysis of Risks
Figure 1: KGRTC Risk Matrix
IMP
AC
T
LOW MEDIUM HIGH
HIG
H
Change
management Risks
Liability Risks
Program & Project
Risk
Strategy Execution
Risk
Financial Risk
ME
DIU
M
Marketing and
Sales Risk
Innovation Risk
Sustainability Risk
Compliance Risk
Economical Risks
Technology Risk
Strategy Forecast
Risk
Fraud Risk
Reputational Risks
Competition
Risk
LO
W
Political Risk
Security Risks
Operational risks
LOW MEDIUM HIGH
LIKELIHOOD OF OCCURENCE
Key to Colour Code
Colour Green aAmber Red
Grading Acceptable Issues Unacceptable
The eighteen (18) categories of risks identified for KGRTC have further been
streamlined into the following three main themes based on how they are perceived to
affect KGRTC.
5.3.1.1 Environmental Risks: Risks arising from the environment in which KGRTC
operates. This relates to the type of clients, the laws and regulations peculiar
to the Centre and the necessary skill set required for the Centre to function.
5.3.1.2 Process Risks: Risks identified emanating from the processes which the
Centre undertakes to achieve set objectives. The majority of these risks under
this category is operational in nature and therefore requires that the Centre’s
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management is fully involved to ensure that these risks are well managed as
part of their day-to-day managerial activities.
5.3.1.3 Information for Decision Making: Risks which are directly linked to the
decisions made by Management or the lack of. Risks such as strategic
execution, Strategic forecast risks, financial risks, marketing and sales risks
fall under this theme.
5.3.2 Risk Mitigation Strategies
KGRTC has identified four types of risk mitigation strategies that hold unique and
closely relate to the risk profile, namely:
a) Risk Limitation: This strategy will be employed by the Centre to limit risk
exposure by taking the following actions:
i) Increase the revenue sources from Training, Conferences and Consultancy
services and ensuring that costs especially direct costs, are minimized
through efficient use of consumables, careful planning of activities to
achieve economies of scale.
ii) Explore more avenues of increasing the customer base especially now with
the increased government infrastructure investments in mini hydro power
stations and cleaner energy sources such as solar, and wind.
iii) Explore more ways of accommodating the utilities drive to train more staff
in-house by ensuring that scheduled and tailor-made courses are customized
to meet schedules which are more convenient to the clients.
iv) Source for funding for the KGRTC Strategic Business Plan from both
government and the international cooperating partners.
b) Risk Avoidance: This will be used to eliminate any exposure (activity) that gave
rise to the risk. A combination of tightened internal controls and constant
monitoring of the same will ensure that risks arising from the operations,
compliance, system or security failures are avoided.
c) Strategic Exploitation of Emerging Opportunities: KGRTC has in the last
few years forged and signed MOUs with APUA which has meant that courses
run traditionally in English had to be offered in other languages such as French
and Portuguese. With this in mind, new opportunities have arisen for KGRTC to
build on its competencies and penetrate further into both French and Portuguese
speaking markets.
In light of this development, the Centre will invest in the translation equipment
as a matter of urgency, so that the Centre can reduce on the high costs incurred
when paying for translators and hire of translation equipment.
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d) Promoting a Culture of Cohesion: To cartel the risks arising from strategy
execution risks, forecast risks and innovation, KGRTC will ensure that there is
a culture of cohesion amongst its employees so that planned activities are
achieved on time with minimal complexities. This will communicate the
importance of consistently checking the present status of the project against
scope, limitations, methodologies, exclusions, mitigation plans and budget, to
ensure that there is diligent compliance and that all risks anticipated are being
mitigated at their critical stages.
From the risk assessment above, the Training Centre shall prioritize and establish
useful means for defining and calibrating change readiness thereby taking steps
to mitigate the likely causes and effects of risks with a high probability and
impact on the activities of the Centre.
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6. STRATEGIC BUSINESS PLAN FOR 2018 – 2022
6.1 KGRTC Vision, Mission and Core Values
The Vision Statement
“To Create Enhanced Capacity for Stakeholders in Energy Technologies by Training at least
2,500 Course Participants in Africa by 2022”
The Mission Statement
“To Provide a Learner-Centred Environment for the Acquisition of Skills and
Competencies in Energy Technologies”
Our Motto
“Your Home for Energy Training and Conferences”
Our Core Values
The value statements below reflect what we stand for and how we will conduct ourselves in the
execution of this strategic business plan. The core values have been reviewed and enhanced to
meet the mission and vision of KGRTC as follows:
1. Integrity : We up-hold professional and ethical business practices. We
will ensure honesty, trustworthiness, reliability and zero
tolerance to corruption and fraudulent practices.
2. Team Spirit : We value teamwork. We believe team spirit will sustain
efficiency and effective quality service delivery. We will
recognize the contribution and value of individuals in a team
and encourage unity of purpose.
3. Learning and
Innovation
: We believe in continuous learning and capacity
enhancement. We are committed to seeking new ways to
advance knowledge, solve problems, improve our professional practice and expand on our successes.
4. Corporate Social
Responsibility
: We are committed to being a good corporate citizen and we
will participate in community development and environmental protection.
5. Quality : We believe in excellent service delivery and customer
satisfaction. We will employ all available resources to meet
client’s needs and demands.
6. Gender Equality : We recognize the diverse experiences of people of all
genders. We believe in full and inclusive participation by all
and that every person has the right and responsibility to contribute their talents and skills.
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6.2 Strategic Themes for the Strategic Business Plan 2018 – 2022
In the five years of the Strategic Business Plan 2018 – 2022, the strategic themes shall be as
follows:
a) Effective Strategic Partnership
The objective of this strategic theme is to establish and collaborate with key institutions
in order to diversify funding sources and enhance the quality of services offered.
The Centre will achieve this by engaging more cooperating partners and new partners.
b) Efficient & Effective Internal Processes (Operational Excellence)
The objective of this strategic theme is to transform KGRTC into a Learning and
Development Centre of Choice in energy technologies and a leader in the provision of
conference and accommodation facilities.
This will be achieved by operational efficiency and effectiveness, and increased
customer satisfaction in the provision of services. KGRTC will aim to provide these
services to meet customer expectation in a cost-effective manner through continuous
improvement.
c) Financial Sustainability (Business Growth)
The objective of this strategic theme is to improve the financial performance of KGRTC
and diversify the revenue sources in order to achieve financial sustainability by 2030.
This will be achieved through the realized investment projects in the Small Hydropower
Stations, Wind Power Generation and increased capacity through the New Learning
Centre and additional guesthouses from ZESCO. Two of the small hydropower projects
(Chipota and Kafue Lower) are estimated to be completed and commissioned by 2022
while the guesthouses are expected to be handed over to KGRTC in a phased approach
commencing in 2018.
The success of KGRTC will be about achieving both the financial and non-financial
metrics and parameters as detailed in the balanced scorecard. The Centre being a public
interest institution will always enjoys some level of external support in order to fulfill
its mandate. Complete financial sustainability is a long-term objective.
d) Effective Human Capital Development
The aim of this strategic theme is to ensure that our staff undergo continuous
transformation to match up to the Centre‘s strategic needs.
The Centre will achieve this through the training and further development of existing
employees. This method will involve features like trainings, personal development
courses, seminars and other types of activities aimed at increasing the knowledge and
experience of the workers. The increase in the knowledge and experience capital of the
various employees will benefit KGRTC through increased productivity.
The specific targets under each of the strategic themes are highlighted in the Balanced
Scorecard depicted under Section 6.6.
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6.3 Strategic Objectives and KPIs for the 2018 – 2022 SBP
Over the course of the next five years, KGRTC will implement various strategic
initiatives and programmes in line with our mandate in order to achieve the following
broadly stated strategic objectives:
Stakeholder Perspective
1. To Enhance effective collaborations with other Institutions
2. To Ensure Timely engagement of stakeholders
3. To Ensure quality and competitiveness of services offered
4. To Ensure a conducive business environment
5. To Enhance Energy Research and Analysis
Business Processes Perspective
6. To Increase operational efficiency and effectiveness
7. To Enhance Compliance Monitoring System
Financial Perspective
8. To increase Infrastructure Investments
9. To Ensure Prudent Management of Resources
10. To Ensure Robust Revenue Collection Mechanism
Organizational/People Perspective
11. To Retain Skilled, Motivated and Productive Employees
12. To promote positive performance culture
13. To Continuously develop technical and managerial skills and competencies
6.4 Strategy Map for the 2018 – 2022 SBP
To translate our strategy into action, the above strategic objectives have been linked
together in a strategy map to show the cause-and-effect relationships between the
performance drivers and the desired outcomes across the perspectives. The strategy
map in Figure 2 describes how we expect to create value for KGRTC and for our
customers/stakeholders.
6.5 Corporate Balanced Scorecard
KGRTC has adopted the Balanced Scorecard methodology for strategic planning,
performance measurement to implementation and monitoring of its strategy. A balanced
scorecard is a performance metric used in strategic management to identify and improve
various internal functions of an institution and their resulting external outcomes. It is
used to measure and provide feedback to organizations on one hand, as well as a
planning tool on another hand. The Balanced Scorecard approach will facilitate the
cascading down and communication of the strategy to the entire organization and its
stakeholders.
The strategic priorities have been outlined on the KGRTC Balanced Scorecard in
Section 6.5.
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ST
AK
EH
OL
DE
R
PE
RS
PE
CT
IVE
Wh
at
We
Wan
t T
o
Acc
om
pli
sh
INT
ER
NA
L
PR
OC
ES
SE
S
How
We
Pla
n T
o A
ccom
pli
sh I
t
FIN
AN
CIA
L
PE
RS
PE
CT
IVE
PE
OP
LE
PE
RS
EP
EC
TIV
E
Figure 2: KGRTC Strategy Map
To increase Infrastructure Investments
Timely engagement of
Stakeholders
EFFECTIVESTRATEGIC PARTNERSHIPS
Ensuring quality and
Competitiveness of Services Offered
EFFICIENT AND FFECITIVE
INTERNAL SYSTEMS
Ensure Prudent
Management of Resources
Ensure Adequate and Diversified
Funding Sources for The Institution
Ensure Robust
Revenue Collection Mechanism
EFFECTIVE HUMAN CAPITAL DEVELOPMENT & MANAGEMENT
To Promote Positive
Performance culture
To Retain Skilled, Motivated
And Productive Employees
Enhance Project
Management System
FINANCIAL SUSTAINABILITY
Enhance Compliance Monitoring System
Ensure a conducive
Business Environment
Enhance Effective
Collaborations with Other Institutions To Enhance
Energy Research and Analysis
Increase Operational Efficiency by
Automated and Integrated
Business Processes
Using an appropriate ERP
Continuously develop
Technical and managerial
Skills and competencies
To Create Enhanced Capacity for Stakeholders in Energy Technologies
by Training at leats2,500 Course Participants In Africa by 2022
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6.6 The KGRTC Balanced Scorecard for the 2018 – 2022 SBP
Perspective Strategic
Objectives Measures
Baseline:
2017 Targets
Strategic
Initiatives
Strategic
Funding
Sources
Funding
Position Resp.
ST
AK
EH
OL
DE
R P
ER
SP
EC
TIV
E
1. Enhance
Effective
Collaboration
s with Other
Institutions
Number of Active MoU’s 7
Maintain 100% of
Active MoU’s
Integration
of identified
business
processes
Internal Confirmed
TM
Number of Joint Courses Conducted
with other Institutions 3 Courses
Hold at least 5
courses per year TM
Number of collaborations on energy
research 0 1 per year TM
Number of Consultancy Partnerships
with other Institutions 1
At least 2
successful consultancy
activities
undertaken per
year
TM
2. Ensure
Timely
Engagement
of
Stakeholders
Number of Regional Needs
Assessments undertaken peer year 2 At least 4 per year M & PRM
Stakeholders Forum Meeting held 1 1 meeting annually TM
Number of International Exhibitions Attended
2 At least 4 per year M & PRM
Number of Local Exhibitions Attended 2 At least 4 per year M & PRM
Open Days conducted 1 At least 2 per year M & PRM
Number of Employee Consultative
meetings 2 At least 4 per year Registrar
3. Ensure
Quality and
Competitiven
ess of Services
Offered
Number of Benchmarking Activities
undertaken 1 1 in 3 years
M &
PRM/TM
Number of Curriculum Review and
development
1 in 3
years 1 in 3 years TM
Number of Marketing Surveys 2 At least 2 per year M & PRM
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Perspective Strategic
Objectives Measures Baseline: 2017 Targets
Strategic
Initiatives
Strategic
Funding
Sources
Funding
Position Resp.
ST
AK
EH
OL
DE
R P
ER
SP
EC
TIV
E
[CO
NT
’D]
4. Ensure
optimal and
conducive
Business
Environment
Number of client feedback
issues closed 85% 100% M & PRM/TM
% of Corporate Social
Responsibility Budgeted
utilized
105% 100% M & PRM
Compliance to statutory and
regulatory requirements 100% 100% compliance Bursar/Registrar
Compliance in meeting agreed
business terms 80% 100% compliance Bursar/Registrar
Number of collaborations on
energy research 0 At least 1 per year TM
% availability of guest rooms
and laboratories 75%
100% availability
of guest rooms
and laboratories
based on the
number of planned
days of
availability per
year
Replacement
of Asbestos
Potential:
Cooperating
Partners
Unfunded TM
5. To Enhance
Energy
Research
and Analysis
Number of active research
programs 0 At least 1 per year TM
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Perspective Strategic Objectives Measures Baseline:
2017 Targets
Strategic
Initiatives
Strategic
Funding
Sources
Funding
Position Resp.
INT
ER
NA
L P
RO
CE
SS
ES
6. Increase Operational
Efficiency and
Effectiveness by
Automated and
Integrated Business
Processes using an
appropriate ERP
Number of processes
automated 17 50
Implement a
Computerized
Maintenance
Management
System by 2022
Internal Funded
All HoD’s
Number of processes
integrated 5 15
Transform the
website into an e-
Business Portal
Internal Funded
All HoD’s
7. Enhance Compliance
Monitoring System
Implementation rate
of action plans for
external and internal
audit findings.
70% 100%
Implement Governance,
Risk and
Compliance
Solution by 2019
Internal Funded
All HoD’s
Implementation rate
of action plans for ISO IMS.
91% Est.
2017 Audits 100%
All HoD’s
Implementation rate
of action plans for
Stakeholders Forum.
98% 100%
TM
Number of Project
Management Systems
prior to
commencement of
each investment
project
0
1 PIU established and
functional for 10 MW Sida Small Hydropower Station
Director/
TM
0
1 PIU established and
functional for 200 kW
Chipota Falls Mini Hydropower Station
0
1 PIU established and
functional for 13 MW
ZESCO Small Hydropower
Station
0
1 PIU established and
functional for 7.5 MW
KGRTC Wind Farm.
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Perspective Strategic
Objectives Measures
Baseline:
2017 Targets Strategic Initiatives
Strategic
Funding Sources
Funding
Position Resp.
FIN
AN
CIA
L P
ER
SP
EC
TIV
E
8. To increase
Infrastructu
re
Investments
% Completion
of Construction
of the New
Learning Centre
0%
100% by 2020 of Phase One of the
New KGRTC Learning Centre
Mobilize K80M for
construction
Financiers
/Cooperating
Partners
Potential:
MoHE
Director/
TM/
Bursar
100% by 2021 of Phase Two of the
New KGRTC Learning Centre Mobilize K40M
Financiers
/Cooperating
Partners
Potential:
MoHE
100% by 2022 of Phase Three of
the New KGRTC Learning Centre Mobilize K40M
Financiers
/Cooperating
Partners
Potential:
MoHE
% Completion
of Construction
of Power
Stations
0%
100% by Dec. 2021 of 13 MW
KGL Small Hydropower Station
Conclude PPA and
SPV-O&M Structure Internal Confirmed
Director/
TM/
Bursar
100% by Dec. 2022 of 200 kW
Chipota Falls Mini Hydropower
Station
Provide Co-funding for
construction of Power
Station and conclude
the PPA and SPV-
O&M
Internal Confirmed
10% by 2022 of 10 MW Sida
Small Hydropower Station-
Operation and Maintenance by
2020 Mobilize Funding for
construction
Financiers/Coope
rating Partners
Potential:
Sida
10% by 2022 of 7.5 MW KGRTC
Wind Farm-Operation and
Maintenance
Financiers/Coope
rating Partners
Potential:
Sida
% Completion
of Building the
Specialized State-of-the-art
Renewable
Energy
Laboratory
0% 100% Completion by Dec 2019 Mobilize Funding for construction and
purchase of equipment
MoHE, Sida, APUA, and
Internal
Potential Director/
TM
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Perspective Strategic
Objectives Measures
Baseline:
2017 Targets
Strategic
Initiatives
Strategic
Funding
Sources
Funding
Position Resp.
FIN
AN
CIA
L P
ER
SP
EC
TIV
E
8. To increase
Infrastructure
Investments
(Cont’d)
Net Income from ZESCO Guest
Houses (Operate and Manage) 0 2018: K63,000
Mobilize Funding
for construction and
purchase of
equipment
MoHE,
Sida,
APUA,
and
Internal
Potential Confirmed
0 2019: K475,000
0 2020: K764,000
0 2021: K1,189,000
0 2022: K1,413,000
Number of new courses conducted in
Renewable Energy 2 2 courses per year
Deploy a Distance
Learning Platform
for online courses
Internal Confirmed
TM
Number of consultancy services undertaken 1
At least 2 successful consultancy activities
undertaken per year
None
TM
% of Net Income from consultancy
services against total internally
generated income
2% ≥2% per annum None
TM
Number of new clients introduced 3 5 new clients per
year None
TM/M &
PRM
Proportion of Internally Generated
Income against Total Income 44% 51% annually None
Director
% of repeat business per annum 50% 50% None TM/M &
PRM
9. Ensure
Prudent
Management
of Resources
Cost to Internally Generated Income
Ratio 2.68 1.9 by 2022 None
All HoD’s
Asset Turnover Ratio 0.1 >1 by 2022 None Director
Acid Test Ratio 1.18 >1 maintained None Director
Internally Generated Income Growth 28% 10% per year None Director
10. Ensure
Robust
Revenue
Collection
Mechanism
Debtor Days 91.7 Days ≤30 days None Bursar
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Perspective Strategic
Objectives Measures Baseline: 2017 Targets
Strategic
Initiatives
Funding Sources for
Strategic Initiatives
Funding
Position Resp.
PE
OP
LE
PE
RS
EP
EC
TIV
E
11. To Retain
Skilled,
Motivated
and
Productive
Employees
Labor Stability Index 97% 100% None N/A N/A Registrar
Internally generated Income
per capita, per year
K290,000 per
capita per year 100% None N/A N/A All HoD’s
Employee Satisfaction Rate 97% Est.2017 100% None N/A N/A Registrar
12. To promote
positive
performance
culture
Number of Disciplinary
Cases 1 per year 0 None N/A N/A Director
Average Performance
Appraisal Rating
65% 70% None N/A N/A Director
Number of team building
Initiatives 9 12 per year None N/A N/A Director/Registrar
13. Continuously
develop
technical and
managerial
skills and
competencies
% of HRD Budget actualized 80% ≥80% of HRD
Budget
Training in
French and
Portuguese
Internal Confirmed Registrar
% of people trained under the
HRD Plan 80%
≥80% of the
HRD Plan None N/A N/A Registrar
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6.7 Overall Target Performance for the 2018 – 2022 SBP
The overall target of KGRTC in the next Strategic Business Plan period will be to
achieve a performance score of at least 70% by the end of 2022. The proposed
performance rating with related sanctions and incentives is as follows:
Rating Score (%) Sanctions/Incentives
Good >70
As per Performance Bonus
Policy Moderate 50-70
Below Average <50
6.8 Implementation of the 2018 – 2022 SBP
For KGRTC to attain its vision of Enhancing Capacity for Stakeholders in Energy
Technologies by Training at least 2,500 Course Participants in Africa by 2022 and play
its role in national and regional social-economic transformation, Management will
endeavor to execute and achieve the targets in the plan timeously through annual
operational plans.
The Management will be accountable for the achievement of the strategic objectives
under the supervision of the Board of Trustees and through its Committees.
Management will report to the Board of Trustees on a quarterly basis.
6.9 Key Assumptions/Critical Success Factors
The effective implementation of this SBP is dependent on the following key
assumptions:
a) Continued funding support from ZESCO
b) Stable macro-economic environment
c) Cooperating Partners supportive of KGRTC
d) Availability of funds to finance the construction of planned power stations and
the New Learning Centre.
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7. MARKETING PLAN
7.1 Stakeholder Analysis and Expectations
The Stakeholder map in Figure 3 presents a picture of virtually all KGRTC
stakeholders. The stakeholder map shows the level of influence and their impact on the
Centre.
Figure 3: Stakeholder Map
HIGH
PRIMARY PRIORITY TOP PRIORITY
1. Regulatory Bodies
Zambia Revenue
Authority
Tourism Board
Registrar of Societies
Workers
Compensation
NAPSA
Strategy: Meet their needs
and engage periodically.
1. ZESCO
2. Board of Trustees
3. Management and Staff
4. Customers
5. Financiers
6. Cooperating Partners
7. TEVETA
8. Government of the
Republic Zambia
Strategy: Focus efforts on this
group, engage and consult
regularly
LOW
LOW PRIORITY SECONDARY PRIORITY
Strategy: Do nothing
These are potential
supporters/goodwill
ambassadors
Suppliers
Community
Strategy: Show consideration
Make use of interest
through involvement in
low risk areas
Keep informed and
consult on interest area
LOW HIGH
As can be seen from the map, our stakeholders have been grouped into four categories
depending on the level of influence and impact on the Centre.
Interest/Impact of Stakeholders
Infl
uen
ce/P
ow
er o
f st
ak
ehold
er
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Those falling in the primary priority have high influence but low impact on the training
Centre. Those falling in the top priority category have high influence and high impact
on the training Centre.
Customers and course participants fall under this category due to their primary role in
the business while ZESCO and the Board of Trustees play the role of owners and
oversight. These relationships are carefully nurtured and monitored for any changes.
The same goes for the secondary priority stakeholders. They are monitored for any
changes in influence.
To establish the expectations of stakeholders, interactive stakeholder consultations were
conducted with different groups depending on their market segment. The Center will
continue to employ the same proactive and interactive stakeholder engagement model
to actively engage with stakeholders on an ongoing basis of respect, openness and trust.
7.2 Centre’s Customers
The customers in the KGRTC service area come from power utilities, water utilities,
government ministries, mining and manufacturing companies. The KGRTC customers
can be divided into two broad segments on the basis of product lines. The Centre has
two major product lines: training and consultancy, and conferencing. Each event
product relies on accommodation and catering provided at the Centre. Below is a table
showing the current portfolio of customers.
Table 7: KGRTC’s Customers
Training and Consultancy Conferences
i. Electricity Power Utilities and
Subsidiaries
ii. Water Utilities
iii. Rural Electricity Authorities
iv. Energy Regulations Authorities
v. Manufacturing Companies
vi. Mining industry
vii. Insurance Companies
viii. Government Ministries and
Departments
ix. Public Sector Institutions
i. Government Ministries and
Departments
ii. Non Governmental
Organisations (NGO's)
iii. Donors and national
Cooperating Partners
iv. Banks
v. Local and Foreign Training
Institutions
vi. Private and Public Companies
vii. International Organisations
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7.3 Business Geographical Coverage
KGRTC covers the whole African continent. The potential market area consists of 42
African countries, but the current actual participation is 26 countries. This shows there
is still scope for growth in geographical spread. The participant numbers from the
participating countries represent a smaller market share than existing demand. There is
business potential to undertake further market penetration in the current market.
7.4 Competition Risk and Potential Market
In analysing the current and future markets of the Centre, it was noted that some
countries have national power training Centres whilst other utilities have plans of setting
up their own training centres. This is likely to create competition for KGRTC.
In Zambia, KGRTC commands a considerable share of the market in in-service energy
training. ZESCO has been a promoter and supporter of KGRTC. The Centre has a
strong foothold in the energy sector in Zambia. The reputation and credibility of the
Centre is high in its customer segments.
Chart 1 depicts participation by country for the period 2013 to 2017. The chart shows
countries that sent more than 50 course participants to the Centre during the period.
Chart 1: Participation by Country Chart 2: Participation by Region
From the pie chart, Zambia recorded the highest participation with 977 participants,
followed by Malawi with 277 participants. The high participation from Malawi can be
attributed to the unbundling of the national utility ESCOM which led to increased
demand for capacity building. Angola was third in participation with 198 participants.
The increased participation was also as a result of unbundling of the national utility,
ENE. Angola was a major beneficiary of the APUA scholarship scheme.
In East Africa, Uganda and Rwanda are the most promising markets. The total number
of course participants from East Africa was 440 with Uganda contributing the largest
number of participants at 174.
Zambia, 977
Malawi, 277
Angola, 198
Uganda, 174
Tanzania, 117
Swaziland, 94
Ghana, 82
Rwanda, 76Kenya, 73 Botswana, 53
Congo DR, 53
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In Southern Africa, the Centre has attracted participants from non-English speaking
countries. These include Mozambique, Angola and Congo DR. The three countries have
huge capacities for hydropower generation. Consequently, the need for training has been
growing creating opportunities for KGRTC. For the period 2013 to 2017, KGRTC has
trained 292 participants from these three non-English speaking countries in skills across
the electricity supply chain in Generation, Transmission and Distribution courses.
KGRTC will endeavour to invest more in Portuguese and French languages to
consolidate this market.
West Africa has huge potential for training not just in hydropower but especially courses
on power trading and the non-generation courses. The APUA – ANCEE program will
in the shorter term assist in marketing the Centres of Excellence and ensure participation
from West African utilities on the non-French speaking Centres of Excellence are
increased. Through the West Africa Power Pool (WAPP) growth prospects will spike
largely based on energy needs of Nigeria and rapidly growing mining sector in West
Africa.
7.5 Marketing Strategies
Marketing and sales strategy will be based on market penetration/expansion and market
consolidation. This will entail active engagement of current markets to drive business
growth while expanding into new markets. New products will be launched to support
the growth in both numbers and revenue. Table 8 shows the summary initiatives that
will be undertaken under each strategy, which are elaborated on below.
Table 8: Marketing Strategies
Market Consolidation Initiatives Penetration/Expansion Initiatives
i. Provision of very high quality teaching
and learning standards at all times
ii. Using highly motivated, competent and experienced staff
iii. Treating training participants as the key
stakeholders of the Centre, at all times
and seeking their feedback on the
operations and service provided by the Centre
iv. Undertaking Customer satisfaction
surveys
v. Client focused Advertising
vi. Continuous engagement with clients to understand their needs
vii. Corporate Social Responsibility
viii. Competitive pricing
i. Introduction of more courses in
renewable energies
ii. Introduction of Open Distance
Flexible Learning courses
iii. Participating at international
trade shows
iv. Introduction of promotional
packages
v. Holding open days and other
promotional events
vi. Development of demand driven
courses
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7.5.1 Advertising
The Centre will continue advertising the training, conferences and
accommodation facilities in local and foreign journals, magazines and
newspapers, electronic media, KGRTC electronic newsletter, website and
mobile applications. These channels will help to promote the Centre’s services
to a wider market. KGRTC will aggressively utilize social media platforms such
as Face book, YouTube and LinkedIn to engage existing former and future
clients.
In addition, KGRTC will continue to advertise through the use of marketing
literature such as the training prospectus, flyers and brochures. These forms of
advertising are expected to generate positive results for now and the future.
7.5.2 Marketing Literature
KGRTC Training prospectus, Diaries, Conference and Training brochures,
Calendars, and other marketing and promotional instruments will be produced
and distributed to clients and stakeholders at different events and activities,
physically, by postal services, courier and electronically for promotional
purposes. This will be done on an annual basis and as regularly as possible.
7.5.3 Promotional Activities
These will include the distribution of Calendars, Dairies, and other branded
promotional materials. The Centre will continue to participate in high value
events such as sports, conferences, exhibitions, international visits and market
surveys in order to enhance its presence both locally and internationally.
7.5.4 Corporate Social Responsibility
KGRTC will fully utilize the approved CSR Policy and the allocated funding
annually to engage the communities and meet some of the social needs for
different target groups. Whenever possible, KGRTC will partner with the
community in Namalundu to engage in activities that add value to the
community. KGRTC will continue being a responsible corporate citizen.
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8. OPERATING PLAN
8.1 Operating Programme
The normal operating hours for KGRTC will be from 8:00 hours to 17:00 hours Monday
to Friday. However, certain classes of employees that work shifts will work beyond
17:00 hours, and during weekends and public holidays.
Table 9: Business Operating Hours
Per Day Per Week Per Month Per Annum
Morning:
08:00 hours to 13:00
hours
Afternoon:
14:00 hours to 17:00
hours
Total operating hours: 8
Monday to
Friday:
8 hour shift
Saturdays,
Sundays and
Public
holidays:
Closed
Total operating hours: 40
160 hours
(Estimated
operating
days per
month)
280 days
(this
figure
takes
account of
public holidays)
8.2 Current and Envisaged Services to be Offered
KGRTC will continue to offer services in the four (4) key areas of Training,
Conferences and Seminars, Accommodation and Catering as outlined in Section 1.4.
The Strategic Business Plan 2018 – 2022 focuses on increasing capacity in service
delivery through the proposed investments as outlined in Table 10.
Table 10: Additional Facilities from the Proposed Investments
Training a) Construction of the Small Hydropower Stations for training
and income generation
b) Laboratories for demonstrations
Conference and
Seminars
c) 2 new conference rooms (New Learning Centre)
d) 1 Auditorium (New Learning Centre)
Accommodation
Facilities
e) 40 new guest rooms (New Learning Centre)
f) 56 new guest rooms (Siavonga, Itezhi Tezhi & Kafue
Gorge Guest Houses to be managed by KGRTC on behalf
of ZESCO)
Catering Facilities g) 1 New restaurant (New Learning Centre)
Other Services h) 1 New Gymnasium (New Learning Centre)
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8.3 Operating and Utilization Capacity
Table 11: Operating and Utilization Capacity
Service Type Current Envisaged
Africa Conference Hall 100 delegates 100 delegates
Kilimanjaro Board Room 18 delegates 18 delegates
New Learning Centre (2 Conference
Rooms) - 60 delegates
New Learning Centre (1 Auditorium) - 150 delegates
Kariba Room 30 delegates 30 delegates
Victoria Room 30 delegates 30 delegates
Computer Based Training Room 20 delegates 20 delegates
Executive Room 12 Rooms 12 Rooms
Standard Rooms 56 Rooms 56 Rooms
Twin Bedded Rooms 9 Rooms 9 Rooms
Executive Rooms (New Learning Centre) - 9 Rooms
Standard Rooms (New Learning Room) - 30 Rooms
Presidential Room (New Learning
Centre) - 1 Room
ZESCO Guest Houses - 56 rooms
Lule Restaurant 55 delegates 55 delegates
Nidelva Restaurant 26 delegates 26 delegates
Oasis Mingling Area 30 delegates (open
space)
30 delegates
(open space)
Gymnasium 15 delegates 15 delegates
Hire of transport 7 vehicles 10 vehicles
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8.4 Power Projects and New Learning Centre
Table 12: Investment Projects [Power Projects an New Learning Centre]
Project Name Current
Capacity
Envisaged
Capacity
[MW]
Estimated
Cost
(US$)
Envisaged
Date of
Commissioning
Chipota Mini Hydropower
Station
0 0.2 1,779,000 1st Half of 2021
Kafue Gorge Lower Small
Hydropower Station
0 13.0 0 1st Half of 2022
KGRTC Small
Hydropower Station
0 10.0 36,354,664 After 2022
KGTRC Wind Farm 0 7.5 12,000,000 After 2022
SUB TOTALS 30.7 50,133,664
New Learning Centre
25,628,694
To be
completed in 3
phases with 1st
unit
commissioned
in 2020.
i. Guest Rooms 0 40
ii. Meeting
Rooms
0 60 delegates
iii. Auditorium 0 150 delegates
GRAND TOTALS 75,762,357
8.5 Other Fixed Assets Requirements 2018-2022
Table 13: Additional Capital Items (other than Power Projects and the New
Learning Centre)
Item 2018 2019 2020 2021 2022 Total
Machines
/Equipment/Tools
4,037,000 4,037,000
Furniture and
Fittings
375,000 375,000
Motor Vehicles 1,607,000 1,607,000
TOTAL 6,019,000 6,019,000
8.6 Projected Revenue and Expenditure Summary 2018 – 2022
Table No. 14: Projected Revenue and Expenditure 2018 – 2022
SUMMARY INCOME STATEMENT
2018 2019 2020 2021 2022
K K K K K
Total income 58,184,953 64,022,348 70,546,293 77,349,760 116,120,306
Total
expenses (55,114,858) (59,359,984) (63,989,775)
(70,110,760) (105,526,030)
Surplus/
(deficit) 3,070,094 4,662,364 6,556,518 7,239,000 10,594,276
For Detailed Financial Projections See Appendix VI and VII
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9. GOVERNANCE STRUCTURE
9.1 Board of Trustees
The Centre is governed by a Board of Trustees with representation from Zambia, as the
host country, Malawi, eSwatini, Uganda, Tanzania and Zimbabwe. Zambia is
represented on the Board by ZESCO, the Ministry of Energy (MoE), the Ministry of
Higher Education (MoHE), and the University of Zambia (UNZA). Malawi is
represented through the Electricity Supply Corporation of Malawi Ltd (ESCOM), The
Kingdom of eSwatini through the eSwatini Electricity Company (EEC), Uganda
through the Uganda Electricity Transmission Company Limited (UETCL), Tanzania by
the Tanzania Electric Supply Company (TANESCO) and Zimbabwe by Zimbabwe
Electricity Supply Authority (ZESA).
The Director of Generation at ZESCO presides as the Chairperson of the Board of
Trustees. The Director of Human Resources and Administration also represents ZESCO
on the Board of Trustees.
The Board of Trustees operates through three (3) Committees, namely the Finance and
Administration Committee, the Audit and Risk Committee and the Technical
Committee. The KGRTC Board of Trustees has developed and documented Charters
which guide the Board of Trustees and all the Board Committees. The Board holds its
meetings once every quarter.
KGRTC Financial Statements are audited at the end of each financial year by an
independent external auditor appointed by the Board of Trustees. In addition internal
audit services are provided through the office of the Audit and Risk Manager.
SGS of South Africa conducts the annual surveillance audits under the Integrated
Management Systems implemented for ISO 9001 Quality Management, ISO 22000
Safety Management and ISO 500001 Energy Management Systems Standards. Internal
audits are conducted once a year by KGRTC employees trained in ISO Management
Systems.
All KGRTC assets are covered by insurance. The insurance covers various risks for both
life and non-life.
9.2 The Committees of the Board
9.2.1 Technical Committee
The purpose of the Technical Committee is to advise the Board of Trustees
regarding relevant matters bearing on the quality and reputation of the Centre’s
training programmes and marketing activities. This shall include the
establishment of appropriate training standards and marketing policies.
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9.2.2 Finance and Administration
The purpose of the Finance and Administration Committee is to assist the
Board in fulfilling its functions relating to finance, human resources and
governance for the Institution. The Committee is also charged with the
responsibility of assisting the Board in assessing and making
recommendations regarding Board effectiveness and providing direction
regarding staff and senior management development.
9.2.3 Audit and Risk Committee
The purpose of the Audit and Risk Committee is to assist the Board of Trustees
in fulfilling its oversight responsibilities for the financial reporting process,
the system of internal control, the audit process and the Centre's process for
monitoring compliance with laws and regulations and the code of conduct.
9.3 Management and Staff Establishment
9.3.1 The Director
The Director is the Chief Executive Officer of the Training Centre. The office
is responsible for providing leadership to position KGRTC at the forefront of
the industry in line with its mission and objectives. The position oversees
KGRTC operations to ensure production efficiency, quality service, and cost-
effective management of resources.
In the execution of the SBP, the Board of Trustees delegates some of its
functions to the Management through the Director. The Director is supported
by five (5) Heads of Department.
9.3.2 Head – Training and Consultancy
The Head Training and Consultancy will be deputy to the Director and will
be responsible for the following:
a) Ensuring that courses are developed and run according to agreed plans
and standards.
b) Spearheading consultancy services for research, design, development
and demonstration.
c) Management Representative of the Integrated Management System to
ensure that KGRTC operations are in line with the system and approved
processes.
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9.3.3 Head – Administration
The Head Administration is responsible for the Human Resource and
Administration portfolio and is Secretary to the KGRTC Board of Trustees.
The office will be responsible for the following:
a) Providing leadership and coordination of the Centre’s Human Resources,
and administration functions.
b) Developing and implementing corporate Human Resource strategies,
policies and programs.
c) Ensuring that KGRTC remains compliant with all statutory obligations.
d) Performing Secretarial functions to the KGRTC Board of Trustees.
9.3.4 Head – Finance and Investment
The Head Finance and Investments is the Chief Financial Officer of the Centre.
The incumbent is responsible for the following:
a) Oversight of the financial and fiscal management aspects of KGRTC
operations.
b) Providing leadership and coordination in the business planning,
accounting and budgeting efforts of the Centre.
c) Developing and implementing finance, accounting, billing, and auditing
procedures.
d) Compliance with local financial statutory and budgetary reporting
requirements.
e) Providing investment advice to the Board of Trustees and Management.
9.3.5 Head – Marketing and Business Development
The Head Marketing & Business Development is responsible for the
following:
a) Providing leadership and coordination of KGRTC sales and marketing
functions.
b) Developing and implementing sales and marketing strategies.
c) Monitoring and analysing sales and marketing activities against goals.
d) Developing and implementing appropriate strategies for creation of long
term value for the Centre.
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9.3.6 Head – Audit and Risk Management
The Audit and Risk Manager reports to the Audit and Risk Committee of the
KGRTC Board of Trustees. The incumbent is responsible for the following:
a) Timely execution of risk-based internal audits in accordance with the
annual audit plan.
b) Reviewing and assessing KGRTC processes, controls and practices.
c) Gathering and analysing data for internal audits and assists in the
implementation of recommendations from external audits and
communicating results of audits to stakeholders.
d) Reviewing and evaluating the effectiveness and efficiency of operations,
reliability of financial reporting and compliance with applicable laws and
regulations.
e) Evaluating the possible risks and devising risk management procedures
with attention to key risk areas.
f) Performing Secretarial functions to the Audit and Risk Committee of
KGRTC Board of Trustees.
9.3.7 Direct and Indirect Labour
Table 15 shows a summary of the Direct and Indirect Labour for the Centre as
per Organisational Chart in Appendix II (a) and Appendix II (b):
Table 15: Number of Direct and Indirect Labour
Designation Skills and Experience Existing Proposed
Management
Staff
Minimum of first degree with
over 10 years’ experience in the
relevant professional field.
06 06
Consultancy
Staff
Minimum of first degree in
Engineering with at least 5
years post qualification in the
relevant engineering field.
4 8
Supervisory Staff
Minimum of a diploma in the
relevant field with 5 years work
experience.
7 08
Other Staff
Minimum of a Certificate/
Advanced Certificate in the
relevant field with at least 2
years professional experience.
49 53
Total 66 75
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9.3.8 Staff Motivation
Centre Management motivates workers by utilising an optimal and eclectic
approach, including, among other things, the following aspects.
a) Competitive remuneration packages.
b) Promoting team spirit within the work environment.
c) Providing opportunities for continuous professional development in
line with the Centre’s Human Resource Development Policy.
d) Employing the right number of staff to avoid work overload or work
under load.
e) Treating all staff in a dignified manner.
f) Allowing staff to participate in decisions that affect them.
9.4 Review of the Organizational Structure
KGRTC had a staff establishment of Sixty-six (66) at the time the plan was developed.
The staff complement was Sixty-Five (65). In this Strategic Business Plan 2018 – 2022,
a revised organization structure with a total staff establishment of seventy-five (75) is
being proposed to support the implementation of the new SBP. The titles for some
positions have been changed and responsibilities re-aligned to reflect the changes in
title.
There will be need to assess the effectiveness of the structure in implementing this SBP
and where skills and performance gaps are identified, an organizational restructuring
process will be undertaken. An effective tool to address this process would be a job
evaluation. This process will need to be supported by a more sustainable financing
model.
The gender balance was approximately 29% female and 71% male. KGRTC current
and proposed Organograms are as illustrated in Appendix II(a) and Appendix II(b)
respectively.
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10. FINANCIAL PLAN 2018– 2022
10.1 Key Underlying Assumptions 2018-2022
10.1.1 Macro-economic Assumptions
a) Inflation: The annual inflation is expected to average around 8% for the
period 2018 to 2020 and 10% from 2021 henceforth. As at end of August
2018 the annual inflation stood at 8.1%.
b) Exchange Rate: The exchange rate of Kwacha to the US dollar is forecast
to rise from ZMW10.7/US$ to K12/US$ by end of 2022.
c) Interest Rates: The BOZ Monetary Policy Rate (MPR) is expected to
remain at 9.75% up to the end of 2018. However starting 2019 onward the
MPR is projected to trend around 12%.
10.1.2 Revenue Assumptions and Notes
a) Revenue growth is assumed to be 10% per annum.
b) Training income is based in US$. This has been converted to Kwacha
using the exchange rates indicated on the spread sheet. This has been
projected to increase by 10% per annum
c) It is assumed that the Chipota Mini Hydropower Station and Kafue Gorge
Lower Small Hydro Power Station will be completed and commissioned
in 2021. The revenue projections are based on the feasibility studies’
estimates.
d) The assumed tariff for the PPA for the Chipota Min Hydro Power Station
will be US$ 0.60/Kwh.
e) The assumed tariff for the PPA for the Kafue Gorge Lower Power Station
will be US$ 0.60/Kwh.
f) Marketing income includes seminars and conferences, accommodation,
catering, laundry and internet services. Marketing income is projected to
grow at 10% per annum.
g) Other income is projected to grow at 5% until 2021 when it increases to
10% due to the increase in room capacity.
h) Income from ZESCO guest houses will be realized starting 2019 with the
handover of the Itezhi Tezhi, Siavonga and Kafue Gorge. Going by
prudence concept, the annual average occupancy rate is assumed to be at
30%, in line with the hospitality industry average.
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i) ZESCO contribution is related to payroll expenditure. This will increase
in line with the increase in payroll costs, which is projected at an average
of 8% to 10% per annum.
10.1.3 Expenditure Assumptions and Notes
a) It is assumed that the new hydropower stations will be operated and
maintained by a Special Purpose Vehicles (SPVs). KGRTC will pay a
management fee for this service.
b) Operating & Maintenance expenses for the planned mini-hydro power
stations are estimated at 40% of the related income. This is inclusive of the
management fees payable to the SPV that will operate and maintain the
power stations.
c) Consultancy expense is estimated at 70% of the consultancy value.
d) Costs other than payroll costs have been escalated by a net rate of 3%
(Inflation rate of 8% minus cost reduction rate of 5%) for the first two
years and net movement of 5% (Inflation rate of 10% minus 5% cost
reduction rate). For payroll costs see assumptions below.
10.1.4 Human Capital Management Assumptions
a) Structure – It is assumed that the staff establishment will increase by nine
from the current number of 66 to 75.
b) Salary Adjustments – It is assumed that there will be performance related
salary adjustment of 8% during the first two years and 10% during the last
three years of the Plan.
10.1.5 The Regulatory Environment
It has been assumed that the current legal and regulatory framework will not
significantly alter the Centre’s operations during period of the Strategic Business
Plan.
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10.2 Projected Income & Expenditure 2018-2022
Table 14: Projected Income and Expenditure 2018-2022
2018
K
2019
K
2020
K
2021
K
2022
K
INCOME
Internally generated
income 30,862,199 33,948,419 37,343,261 41,077,587 45,185,346
Income from Power
Projects - - - 4,635,468 45,452,256
ZESCO contribution 27,322,754 30,055,029 33,060,532 31,407,505 25,126,004
ZESCO Guest Houses - 18,900 142,500 229,200 356,700
Grand total income 58,184,953 64,022,348 70,546,293 77,349,760 116,120,306
Growth -1% 10% 10% 10% 50%
EXPENSES
Personnel expenses 32,639,829 35,965,704 39,624,166 43,901,721 48,607,031
Direct operating
expenses 6,761,895 6,964,752 7,173,695 7,532,379 7,908,998
Marketing expenses 1,517,903 1,563,440 1,610,343 1,690,860 1,775,403
Administration
expenses 7,656,825 7,886,530 8,123,126 8,529,282 8,955,746
Consultancy expenses 3,500,000 3,850,000 4,235,000 4,658,500 5,124,350
Maintenance &
transport expenses 2,606,406 2,684,598 2,765,136 2,903,393 3,048,563
Finance charges 432,000 444,960 458,309 481,224 505,285
O&M - Kafue Lower
Hydro Power - - - - 28,773,853
O&M - Chipota Mini
Hydro Power - - - 413,400 826,800
Total expenses 55,114,858 59,359,984 63,989,775 70,110,760
105,526,030
Growth -4% 8% 8% 10% 51%
Surplus/(deficit) for
the year 3,070,094 4,662,364 6,556,518 7,239,000 10,594,276
Detailed Statements of Income and Statements of Financial Position are shown in
Appendix VI & VII.
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11. IMPLEMENTATION, MONITORING AND EVALUATION (M&E)
The overall responsibility for monitoring and evaluation of the Strategic Business Plan
rests with the Board of Trusts coordinated through the Director.
Annual implementation plans will be prepared to guide the operationalization of the
Strategic Business Plan. The plans will outline how the strategic objectives and strategic
priorities will be realized by indicating what will be done, by whom, when, and how;
and will serve as a checklist that will be regularly updated, monitored, and shared among
the stakeholders. The plans will also help coordinate and integrate planned actions,
support coordinated and collaborated efforts, minimize duplication, and promote
synergies.
Monitoring and evaluating of how well strategy is being implemented will be aided by
constant tracking of key strategic outcomes and outputs. The Finance and
Administration Committee in conjunction with the Technical Committee of the Board
will carry out a detailed analysis of the strategy implementation.
KGRTC will utilize the BSC-based performance management system to link
operational actions with the strategic goals. The BSC framework is expected to provide
the following benefits:
a) Set strategic milestones;
b) Establish indicators (scorecards) that measure the achievement of each strategic
milestone;
c) Link reward to performance measures; and
d) Provide feedback for strategy review and learning.
KGRTC will ensure that the strategy is fully communicated and cascaded to all
members of staff. This will help members of staff to understand, plan and implement
their respective duties.
Successful implementation of this strategy will require the following:
a) Ownership of the strategy by Staff, Management, and the Board of Trustees;
b) Effective annual implementation planning and commitment of resources;
c) Behavioral change, minimal conflict, institutional cohesion, and harmony; and
d) Effective M&E to support strategy implementation.
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11.1 Institutional Arrangements for Strategy Implementation
The implementation of this strategy will be carried out by management through the
departments and sections. Implementation therefore requires the shared responsibility
of all employees of the Centre. To harness synergies, ensure holistic and sequenced
approach to implementation of the strategic interventions, and facilitate the coordination
of cross-cutting issues. The Director’s office will coordinate the development of annual
work plans and budgets and bring together relevant stakeholders for joint
implementation of annual plans. Specifically, the responsibilities will entail the
following:
a) Ensuring congruence of institutional, departmental, project and other work plans
with the strategic business plan
b) Ensuring that a sound framework for effective coordination of strategy
implementation is adhered to at all levels.
c) Establishing mechanisms to coordinate intra-departmental linkages in implementing
cross cutting interventions.
d) Periodically organizing strategy performance review meetings to ensure that the
strategy is translated into operations.
e) Developing guidelines and reporting formats and databases to support M&E.
11.2 Progress Reporting, Review, and Communication of Results
Audit and Risk department will provide the foundation for tracking performance against
set targets. Departments shall report at least monthly on key actions, outputs, and
progress towards outcomes, where outcome data is available. This will guide the
production of a quarterly performance report which will be presented to the Board of
Trustees for discussion. The quarterly performance reports will be consolidated into
KGRTC annual report.
To align the strategy with the ever-changing environment, a mid-term review shall be
conducted to assess the performance of KGRTC towards overall targets and the
relevance of the strategic interventions to address emerging challenges.
The staff performance management system shall be aligned with the institutional work
plans to help translate the strategy into every staff member’s role and responsibilities.
Staff performance appraisal at all levels will therefore be developed and signed off
together with departmental work plans.
12. CONCLUSION
The 2018-2022 Strategic Business Plan provides a clear road map that will transform
KGRTC into a dynamic organization responsive to the needs of stakeholders. Overall,
the plan considered the needs, expectations and aspirations of stakeholders and ensures
that the targets set were SMART.
APPENDIX I: PERFORMANCE REVIEW OF THE KGRTC BUSINESS PLAN 2013-2017
60 | P a g e
Strategic
Objective
Performance Target Achievement Means of Verification Score
Comments on the
Deviations
Total
Score
%
Score
Criteria Year Target Actual
1. To provide
quality training and
increase
revenue by
5%
annually
1. Minimum of 300 course
participants
annually
FY 2013 300 399 Training Annual Report of
2013 5 None
17.40 87.0%
FY 2014 300 465 Training Annual Report of
2014 5 None
FY 2015 300 336 Training Annual Report of
2015 5 None
FY 2016 300 491 Training Annual Report of
2016 5 None
FY 2017 300 716 Training Annual Report of
2017 5 None
2. Two (2)
training
needs
assessments
undertaken
annually
outside
Zambia;
FY 2013 2 2 Training Needs Assessment
Reports 5 None
FY 2014 2 1
Training Needs Assessment
and Marketing Reports
2.5
TNA not conducted
due to constrained
financial resources
FY 2015 2 2 5
FY 2016 2 1 2.5
TNA not conducted
due to constrained
financial resources
FY 2017 2 0 1
Insufficient Financial
Resources to
undertake the TNA
3. Review and
revise all old and new
courses
FY 2013 to
2017 1 1
Curriculum Review Report-
2014; Stakeholders Forum
Minutes SHF Meeting of
2014
5
All courses were
reviewed and
enhanced in 2014
with the participation
of all stakeholders
4. 5% annual
revenue
growth
FY 2013 6,656,213 8,869,405 (33%)
Audited Financial Reports
5
FY 2014 8,869,405 10,621,671 (20%) 5
FY 2015 10,621,671 28,335,530 (167%) 5
FY 2016 28,335,530 22,336,696 (21%) 1
FY 2017 22,336,696 24,830,962 (11%) 5
APPENDIX I: PERFORMANCE REVIEW OF THE KGRTC BUSINESS PLAN 2013-2017
61 | P a g e
Strategic
Objective
Performance Target Achievement Means of Verification Score
Comments on the
Deviations
Total
Score
%
Score Criteria Year Target
2. To increase
market share
by 10%
1. Revise
Marketing
Policy
Approved
Policy
Policy is
revised
pending
submission to
the Board
Board Minutes
3
Review not
completed. The
revised policy was
referred back to
Management for further enhancement
at the Board Meeting
of 2016. 7.00 70%
2. Introduce 10
new clients
annually
FY 2013 10 14
Annual Training Report, and
Annual Marketing and Public
Relations Report
5
FY 2014 10 5 2.5
FY 2015 10 7 3.5
FY 2016 10 11 5
FY 2017 10 8 4
3. To diversify
the training
package to
satisfy the
customer
requirements
1. Introduce
distance
learning
a) Distance Learning
Programme Curriculum
developed and approved
by TEVETA in 2017 for
Diploma in
Hydropower
Development and
Management
Approved
Curriculum
Approved Curriculum
5
None
8.00 80%
b) Platform for distance
learning under
development
WIP N/A
2
Insufficient funds
c) Module materials under
development
WIP Training Modules
2
Development of
training modules was
delayed by
completion and
approval of
curriculum
2. Conduct a
minimum of
4 tailor made
courses
annually
FY 2013 4 24 Training Report - 2013 5
FY 2014 4 25 Training Report - 2014 5
FY 2015 4 19 Training Report of 2015 5
FY 2016 4 46 Training Report of 2016 5
FY 2017 4 32 Training Report of 2017 5
APPENDIX I: PERFORMANCE REVIEW OF THE KGRTC BUSINESS PLAN 2013-2017
62 | P a g e
Strategic
Objective Performance Target Achievement
Means of
Verification Score
Comments on the
Deviations
Total
Score
%
Score
4. To design
and Develop
new courses
in energy
technologies
1. Develop new
courses in Solar
Energy
Technology
Course development process initiated, together with efforts for acquisition of support training
equipment
MOU with SMA of
German, and
Solektra
Academy of
Mali
2
Pending acquisition of equipment support training
13.00 65%
2. Develop new
courses in Wind
Power technology
Course developed and conducted on Wind
data handling for wind power development
and use
Training
Annual Report
of 2017
3 Further courses to be
developed on construction,
operation and maintenance
of wind farm once the
support infrastructure is in
place
3. Develop new
courses tailor made
for the mini hydro
power station
2 courses developed and conducted on the
following: Annual
Training Report
[2014], [2016]
4 a) Small Hydropower Development and
Optimization
b) Operations and maintenance of small
hydropower stations
4. Develop new
courses tailor made
for the Power
Systems
Simulators
6 Course developed and conducted on:
Annual
Training Report
[2017]
4
a) Load Tap Changers;
b) Power Systems Stability Studies;
c) Power Systems Fault Analysis;
d) Power Systems Reliability Studies;
e) Hydropower Dam Management;
f) Power Pool Operations
5. To acquire
and install
infrastructure
for new
energy
technologies
1. Install and operate
wind turbine at
KGRTC
Wind measurement mast was installed and readings taken over a period of 12 months.
From the assessment, it is feasible to install
three turbines with a total generating capacity
of 7.5 Mega Watts.
Physical Inspection &
Asset Register
2 Time and financial constraints. Completion of
the power projects need
more time to reach financial
closure 6.00 60% 2. Install and operate
solar equipment at
KGRTC
Solar Hybrid System installed in the New
Power System Simulator Building. Physical
Inspection &
Asset Register
4
APPENDIX I: PERFORMANCE REVIEW OF THE KGRTC BUSINESS PLAN 2013-2017
63 | P a g e
Strategic
Objective Performance Target Achievement
Means of
Verification Score
Comments on the
Deviations
Total
Score
%
Score
6. To develop a mini –
hydropower
station
1. Mobilize funding for mini
hydropower station
Grant given by Sida to complete the feasibility studies for construction of the mini hydropower
station. Feasibility Study
Reports 2
Funds for construction were not available. Transaction
advisor engaged to assist
KGRTC develop financial
model and financing options 4.00 40% Transaction advisor engaged to assist KGRTC
develop financial model and financing options.
2. Construct and
operate a mini
hydropower station
Transaction advisor engaged to assist KGRTC
develop financial model and financing options. Contract 2
7. To establish
and maintain
effective
formal
relations with
other institutions
1. Review all existing
MOU’s with CBU,
UNZA, SBB,
Review and commenced and ongoing Existing MOUs 2 Reviews still on-going. six
(6) new MOU’s signed with
a) Association of Power
Utilities in Africa (APUA);
b) International Centre for
Hydropower (ICH); c) ABB AB; d) UNIPOWER
Sweden; e) IRCA Savenda
6.00 40% 2. Database on all
similar institutions
established and
operational.
Information on collaborations is maintained.
Implementation
Report
2 A standard database is yet to
be established.
3. All KGRTC
courses placed on
the SADC
Qualification Protocol
All courses were accredited to TEVETA for
placement on the Zambia National
Qualification Authority Correspondence
from SADC 2
Discussions still on-going
through TEVETA and
Zambia Qualifications
Authority (ZAQA)
8. To effectively
develop and
maintain
human
resources
1. All KGRTC employees
appraised midyear
and annually
All employees consistently appraised annually
Performance
Appraisal Records 4
The aspect and extent of measuring implementation of
the HRD Plan was not
quantified
8.00 80% 2. KGRTC internal training needs
analysis
undertaken
annually.
Training Needs carried out annually to develop the annual HRD Plan
Training Needs Assessment
Record; HRD
Plan
4
APPENDIX I: PERFORMANCE REVIEW OF THE KGRTC BUSINESS PLAN 2013-2017
64 | P a g e
Strategic
Objective Performance Target Achievement Means of Verification Score
Comments on the
Deviations Total Score
%
Score
9. To provide
cost effective
logistical and
administrative
support
services
1. Procurement
Plan for
KGRTC
developed and
implemented
annually
FY 2013 0 0
Report on
Implementation of
Procurement Plan
1
Procurement Plans were not
available.
2.41 48% FY 2014 0 0
Report on
Implementation of
Procurement Plan
1
FY 2015 37 35
Report on
Implementation of
Procurement Plan
4 Procurement Plan
developed annually but not
fully implemented due to
financial challenges on
Capital Expenditure
(CapEx).
FY 2016 144 75 3
FY 2017 119 72 3
10. To Review the
KGRTC
Business Plan
1. Business Plan
reviewed
annually
Mid Term and Final review of the
Business Plan were done.
Mid Term Review
Report, Final Review
Report 2
Budget and management
accounts reviewed annually
with the development of
annual operational budgets
2.00 40%
GRAND TOTALS [OVERALL SCORE] 73.81 out of 115 64.2%
APPENDIX II (b): CURRENT ORGANOGRAM
65 | P a g e
GRD ES
T
MS1
01
MS2
01
MS3/
AS1
08
AS 2 04
SS1
08
SS2
08
GS1 08
GS2 32
GS3 05
TOT
AL
75
Board of Trustees
Director
1x1
Head Finance & Investment
1x1
Head Training & Consultancy 1x1
Head Audit and Risk
Management 1x1
Head Marketing & Development 1x1
Head Administration 1x1 Consultants
4x1
Accountant
1x1
Marketing &
Development
Officer 1x 1
Food & Beverage Officer 1x1
Procurement Officer 1x1
Human
Resources Officer
1x1
Information
Technology Officer 1x1
Internal
Auditor 1x1
Assistant
Accountant
1x1
Housekeeper 1x1
Head Chef 1x1 Assistant
Procurement
Officer 1x1
Automotive
Mechanic 1x1
Maintenance
Technician 2x1 Information
Management
Officer
1x1
Stores
Accountant
1x1
Laundry
Supervisor 1x1 Chef 5x1
Secretary
1x1
Accounts
Assistant
1x1
Stores
Assistant
1x1 Receptionist
2x1
Laundry
Attendant
4x1
Barman 1x1
Room
Attendant
10x1
Driver
4x1 KEY:
GRD - Grade
EST - Establishment
Security Guard
1x1
Conference
Attendant 1x1 Gardener
1x1
Stewards 2x1
Waiter
5x1
Assistant Consultants
4x1
Maintenance
Officer 1x1
Crafts Person
4x1
APPENDIX II (b): CURRENT ORGANOGRAM
66 | P a g e
GRD E
S
T
MS1
01
MS2 01
MS3/
AS1
08
SS1
07
SS2
08
GS1 08
GS2 28
GS3 05
66
Board of Trustees
Director
1x1
Training Manager 1x1
Audit & Risk
Manager 1x1
Registrar 1x1 Lecturer 4x1
Bursar 1x1 Marketing &Public Relations Manager 1x1
Internal Auditor
1x1 Human Resources
Officer 1x1 Accountant
1x1
Information Technology
Officer 1x1
Procurement
Officer 1x1 Catering Officer 1x1
Conference
Services Officer
1x 1
Assistant
Accountant 1x1
Library Officer 1x1 Buyer Officer 1x1 Maintenance
Technicians 2x1
Automotive
Mechanic 1x1 Head Chef 1x1
Housekeeper 1x1
Secretary1
x1 Chef 5x1
Laundry Supervisor 1x1
Stores
Accountant
1x1
Room
Attendant
10x1
Receptionist 2x1
Stores
Assistant
1x1 Cashier
1x1
KEY:
GRD - Grade
EST - Establishment
Waiter 5x1
Barman 1x1
Laundry
Attendant
4x1
Driver
4x1
Stewards 2x1
Conference
Attendant 1x1 Security Guard
1x1
Gardener 1x1
APPENDIX III: CURRENT AND PROPOSED POSITIONS AND TITLES
67 | P a g e
Current and Proposed Positions and Titles
Existing Proposed No. of
Positions M
anag
emen
t S
taff
Director Director 1
Training Manager Head Training and Consultancy 1
Bursar Head Finance and Investment 1
Audit and Risk Manager Audit and Risk Manager 1
Marketing and Public Relations
Manager
Head Marketing and Business Development 1
Registrar Head Human Resource and Administration 1
Acad
emic
Sta
ff (
AS
1)
Lecturer – Mechanical
Engineering
Consultant – Training and Research 2
Lecturer – Electrical Engineering Consultant – Training and Research 2
None Assistant Consultant – Training and
Research
4
Su
pervis
ory
Sta
ff
Scale
1(S
S1
)
Conference Services Officer Marketing and Business Development
Officer
1
Accountant Accountant 1
Catering Officer Food and Beverage Officer 1
Human Resource Officer Human Resource Officer 1
IT Officer IT Officer 1
Procurement Officer Procurement Officer 1
Internal Auditor Internal Auditor 1
Super
vis
ory
Sta
ff
Sca
le2
(SS
2)
Library Officer Information Management Officer 1
Housekeeper Housekeeper 1
Maintenance Technician Maintenance Officer 2
None Maintenance Technician 1
Automotive Mechanic Automotive Mechanic 1
Head Chef Head Chef 1
Buyer Assistant Procurement Officer 1
Assistant Accountant Assistant Accountant 1
Gen
eral
Sta
ff
Sca
le1(G
S
1)
Stores Accountant Stores Accountant 1
Chef Chef 5
Secretary Secretary 1
Laundry Supervisor Laundry Supervisor 1
Gen
eral
Sta
ff S
cale
2 (
GS
2)
Receptionist Receptionist 2
Cashier Accounts Assistant 1
Stores Assistant Stores Assistant 1
Barman Barman 1
Waiter Waiter 5
Driver Driver 4
Classroom Attendants, Sanitary
Cleaner, Room Attendants
Room Attendant 10
Laundry Attendant Laundry Attendant 4
None Craft Person 4
Gen
eral
Sta
ff
Sca
le3(G
S
3)
Conference Attendant Conference Attendant 1
Kitchen Cleaner Steward 2
Security Guard Security Guard 1
Gardener Gardener 1
Total 75
APPENDIX IV: PESTEL ANALYSIS
68 | P a g e
Factor Global Regional National
Positive Challenge Positive Challenge Positive Challenge
Political Political instability Changes in regional governments
Political Stability Local political changes affecting ZESCO Management.
Government policy to train in-
house affects inflows to KGRTC.
Government regulation with regards to immigration
Factor Global Regional National
Positive Challenge Positive Challenge Positive Challenge
Economic Emerging energy development
initiatives in
Africa and focus
on investments in energy
Slow growth rate within the region
Vibrant local market
Increased number of utilities in the region developing their own
training schools.
Minimal investment in capital
projects in the energy sector
Rising inflation rates has meant
that KGRTC operating costs have been high in some instances
Changes in some power utilities
undergoing restructuring.
Rising bank interest rates
Courses denominated in USD become expensive for local clients
with the weakening of the Kwacha
Stiff competition in conference services within the Kafue,
Siavonga, and Lusaka areas.
Competing products
on the market
Competing products on the
market
Competing products on the
market
Good partnerships
with suppliers
APPENDIX IV: PESTEL ANALYSIS
69 | P a g e
Factor Global Regional National
Positive Challenge Positive Challenge Positive Challenge
Social Cultural Diversity of cultural
backgrounds
among the people coming in.
Factor Global Regional National
Positive Challenge Positive Challenge Positive Challenge
Technological Introduction on virtual
learning/e-
learning. Rapid
changes in technology.
High investment
in energy sources and
technology
Factor Global Regional National
Positive Challenge Positiv
e
Challenge Positiv
e
Challenge
Legal High immigration fees for
course participants staying
for long periods exceeding
4 weeks.
Environment Effects of climate
change
Low water levels due to poor rainfall in the
sub-region, has meant that utilities have cut
on investment and training expenditure due
to low revenue.
APPENDIX V: HISTORICAL STATEMENT OF INCOME AND EXPENDITURE [2013-2017]
70 | P a g e
KAFUE GORGE REGIONAL TRAINING CENTRE
5 YEAR INCOME STATEMENTS
2017
K
2016
K
2015
K
2014
K
2013
K
INCOME
Internally generated
income
18,838,328 19,984,348 10,272,541 9,936,552 8,869,405
Income from projects 5,919,901 832,608 24,614,221 1,693,676 -
ZESCO contribution 22,237,733 24,134,341 16,432,142 12,425,791 11,026,877
Non-operating income 11,581,018 9,928,356 10,472,473 1,818,167 916,434
Grand total income 58,576,980 54,879,653 61,791,377 25,874,186 20,812,716
Growth 7% -11% 139% 24% 26%
EXPENSES
Personnel expenses 25,981,182 30,381,878 21,420,149 16,001,479 12,450,486
Direct operating expenses 8,384,784 4,688,894 2,302,666 2,650,050 2,316,937
Marketing expenses 1,095,238 1,413,431 518,207 1,179,559 789,920
Administration expenses 20,201,185 18,848,048 31,450,613 4,862,827 3,519,523
Maintenance & transport 1,816,872 1,737,592 1,182,799 1,418,933 1,336,826
Finance charges 165,879 203,233 384,862 112,079 58,682
Total expenses 57,645,140 57,273,076 57,259,296 26,224,927 20,472,374
Growth 1% 0% 118% 28% 11%
Surplus/(deficit) before
taxation 931,840 (2,393,423) 4,532,081 (350,741) 340,342
Taxation - - (3,452)
Surplus/(deficit) for the
year 931,840 (2,393,423) 4,532,081 (350,741) 336,890
APPENDIX VI: PROJECTED STATEMENT OF INCOME AND EXPENDITURE [2018-2022]
71 | P a g e
2018 2019 2020 2021 2022
Budget Forecast Forecast Forecast Forecast
Income
Training 15,048,500 16,553,350 18,208,685 20,029,554 22,032,509
Seminars & conferences 238,966 262,862 289,148 318,063 349,869
Accommodation 5,232,597 5,755,856 6,331,442 6,964,586 7,661,045
Catering 4,096,661 4,506,327 4,956,960 5,452,656 5,997,921
Laundry 360,000 396,000 435,600 479,160 527,076
Other income 885,476 974,023 1,071,426 1,178,568 1,296,425
Exchange gains - - - - -
Consultancy income 5,000,000 5,500,000 6,050,000 6,655,000 7,320,500
Sub Total 30,862,199 33,948,419 37,343,261 31,077,587 35,185,346
ZESCO contribution 27,322,754 30,055,029 33,060,532 31,407,505 25,126,004
Utilities contribution - - - - -
Net Income from ZESCO
Guest Houses & Lodges - 18,900 142,500 229,200 356,700
Income from Kafue Lower
Mini Hydro 36,181,320
Income from Chipota Mini
Hydro 4,635,468 9,270,936
Total income 58,184,953 64,022,348 70,546,293 77,349,760 116,120,306
Expenses
Personnel expenses 32,639,829 35,965,704 39,624,166 43,901,721 48,607,031
Direct operating expenses 6,761,895 6,964,752 7,173,695 7,532,379 7,908,998
Marketing expenses 1,517,903 1,563,440 1,610,343 1,690,860 1,775,403
Administration expenses 7,656,825 7,886,530 8,123,126 8,529,282 8,955,746
Consultancy expenses (70%
of income) 3,500,000 3,850,000 4,235,000 4,658,500 5,124,350
Sida projects consultancy
fees - - - - -
Maintenance & transport
expenses 2,606,406 2,684,598 2,765,136 2,903,393 3,048,563
Finance charges 432,000 444,960 458,309 481,224 505,285
Sub total expenses 55,114,858 59,359,984 63,989,775 69,697,360 75,925,377
O&M for Kafue Lower
Hydro Power station - - - - 28,773,853
O&M for Chipota Mini
Hydro Power station - - - 413,400 826,800
Total Expenses 55,114,858 59,359,984 63,989,775 70,110,760 105,526,030
Surplus/Deficit 3,070,094 4,662,364 6,556,518 7,239,000 10,594,276
APPENDIX VII: PROJECTED STATEMENT OF FINANCIAL POSITION [2018-2022]
72 | P a g e
Actual Budget Budget Budget Budget Budget
31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2022
K K K K K K
NON-CURRENT ASSETS
Property, plant & equipment 29,787,249 34,336,199 57,676,199 141,816,199 224,616,199 332,355,689
CURRENT ASSETS
Inventories 186,013 169,331 203,197 243,837 292,604 351,125
Trade and other receivables 13,855,730 5,673,690 9,310,789 11,172,947 13,407,536 13,909,632
Income tax advance payment 215,463 216,666
Cash and bank 3,975,716 9,393,141 10,925,485 16,288,515 24,546,957 38,418,374
TOTAL CURRENT ASSETS 18,232,922 15,452,828 20,439,471 27,705,299 38,247,097 52,679,131
TOTAL ASSETS 48,020,171 49,789,027 78,115,670 169,521,498 262,863,296 385,034,821
TRUST FUNDS AND LIABILITIES
Accumulated funds 1,740,218 4,810,312 9,472,676 16,029,194 23,268,194 33,862,471
Capital reserve 10,746,748 10,746,748 10,746,748 10,746,748 10,746,748 10,746,748
Revaluation reserves 14,951,946 14,951,946 14,951,946 14,951,946 14,951,946 14,951,946
Capital grants 158,329 158,329 21,358,330 103,358,330 186,158,330 242,158,330
TOTAL TRUST FUNDS 27,597,241 30,667,336 56,529,700 145,086,218 235,125,218 301,719,494
NON-CURRENT LIABILITIES
Loans & Borrowings 51,739,490
Deferred Liabilities 10,438,633 11,266,205 12,159,387 13,123,380 14,163,798 15,286,700
10,438,633 11,266,205 12,159,387 13,123,380 14,163,798 67,026,190
CURRENT LIABILITIES
Trade and other payables 9,984,299 7,855,487 9,426,584 11,311,901 13,574,281 16,289,137
Loans & Borrowings
Income tax -
TOTAL CURRENT LIABILITIES 9,984,299 7,855,487 9,426,584 11,311,901 13,574,281 16,289,137
TOTAL FUNDS AND LIABILITIES 48,020,171 49,789,027 78,115,670 169,521,498 262,863,296 385,034,821
APPENDIX VIII: INVESTMENT PROJECTS [2018-2022]
73 | P a g e
Project Name Financier Current
Capacity
Expected
Capacity
(kilowatts)
Estimated
Cost (US$)
Expected
Annual
Revenue (US$)
O & M
(US$)
Construction
Period
[Years]
Date of
Commissioning
[Commercial
Operations]
Feed in
Tariff
(US$/KWh
)
Economic
Useful life
(Years)
1. Chipota Falls Min
Hydropower Station
UNDP,
KGRTC &
REA
- 200 1,779,000 772,578 68,900 1.50 1st Half of 2022 0.60 20
2. KGRTC Small
Hydropower Station
Sida,
KGRTC &
Others
- 10,000 36,354,664 3,015,000 310,000 4.00 1st Half of 2023 0.60 20
3. Kafue Gorge Lower
Small Hydropower
Station ZESCO
- 13,000 - 3.00 4th QTR 2021 0.60 20
4. KGRTC Wind Farm Unfunded - 7,500 12,000,000 1.00 After 2022 0.07 10
5. New Learning Centre Unfunded -
25,628,694 3.00 After 2022 50
TOTALS - 30,700 75,762,357 3,787,578 378,900
Project Name Financier Current
Capacity
Expected
Capacity
(Kilowatts)
CAPEX (K)
Expected
Annual
Revenue (K)
O & M
(US$)
Construction
Period
(Years)
Date of
Commissionin
g
Feed in
tariff
(K/KWh)
Economi
c Useful
life
(Years)
1. Chipota Falls Mini
Hydropower Station
UNDP,
KGRTC &
REA
- 200 19,035,300 8,266,585 737,230 1.50 1st Half of
2021 6.42 20
2. Kafue Gorge Lower
Small Hydropower
Station
Sida,
KGRTC &
Others
- 13,000 - - - 4.00 1st Half of
2023 6.42 20
3. KGRTC Small
Hydropower Station ZESCO - 10,000 388,994,900 32,260,500
3,317,000 3.00
4th Quarter
2021 6.42 20
4. KGRTC Wind Farm Unfunded - 7,500 128,400,000 - - 1.00 After 2022 0.75 10
5. New Learning Centre Unfunded - - 274,227,022 - 3.00 After 2022 50
TOTALS - 30,700 810,657,222 40,527,085 4,054,230
Average Exchange Rate (K/US$) 10.70